Article by Edward Griffin
A few years ago, this article would have been deemed as irrelevant. However, as is the same with all things, the climate has changed and things have become very interesting in business – from the changes in cash flow to the shifts in consumer psychology and the actions which need to be taken in commerce in order to compensate for the apparent morphing of the retail business environment.
Attitudes that would have been viewed as wasteful or too time consuming four or five years ago have now become ever fashionable and vice versa to those which were seen as free and easy back then. More effort needs to be made now by those in the retail industry in order to cap the leaking of revenue with regard to the current restriction on consumer spending. Retailers everywhere, that are not displaying pricing in an adequate way, are hurting themselves through their lack of communication with their customers. By omitting the use of basic bread and butter implements such as price signs and shelf label price display facilities, a crucial dimension of retail business methodology is being ignored. We’re all used to the supermarket retail chain method of price presentation and special offer / multi buy communication with banners and shelf edge labels; the methods which are deployed by those in that business ensures that they are able to stay in that business.
It is also possible for the independent retailer to avail of the same implements whilst keeping the overheads to do so at a minimum. Basic information such as product price, price per unit (kilo / litre) with other promotional information can be easily presented on shelf labels or adhesive product labels so that full confidence is instilled in the retailer from the customer’s perspective. This brings through a feeling that prices remain static over a duration of time, and do not fluctuate randomly on the whim of the retailer. There is a misconception that the process of conventional retail price display is a costly one (in both time and money) and this need not be the case. There are many solutions out there being supplied by businesses both local and international, and most do not require an in depth knowledge of technology or marketing strategies.
Refusal should not be allowed as an attitude which grows in the consumer’s view of the retailer.
How many customer’s walk into a local independent retailer’s shop and upon not finding the price of an item anywhere, walk back out again? This is an unknown quantity, as they’re never around long enough to ask and more than likely do not provide repeat business.
No price display means that an impression of ‘Rip Off Culture’ is perceived with regard to the retailer concerned – this is an unfair assessment of how retailers operate.
The importance of shelf edge label price display cannot be driven home hard (or fast) enough! No matter what the size of the outlet, no matter what the product (beers, wines, spirits, confectionary, grocery or non foods) – it’s all crucial to the buying psychology of the customer. Many independent retailers have the technology available to them to do this, but are not putting the time aside in order to adequately ensure that they are adhering to the required pricing guidelines.
No customers = No money
Common Sense? This may seem like common sense, but because many retailers will rely on the good faith of customers who know and trust them regarding their selling prices, this says nothing to new customers which are passing through on a regular occasion or who have just moved into their locality,
First Impressions count, and only once – because this is all it takes for a customer to make their minds up, walk out and never look back.
First impressions count, and no more so when trying to wow new customers. Shelf labels with clear and large print price values, along with full product descriptions are a bare minimum of what consumers expect to see in any retail outlet these days. In order to shift lines which are not the regular sellers, they are an important tool in making sure that the pricing structure of these goods is communicated effectively.
With some effort and a little attention to the upkeep of how price display is dealt with in their stores, retailers can be doing the most they are able to in order to communicate the necessary information to their customers regarding and influencing their buying decisions.
About the Author
Software developer and support troubleshooter. 15 years experience in five different sectors of IT related commerce, including retail systems, localization and project management support tools and process design. Developer of niche market software solutions for these sectors.
