Visit us July 28th to the 31st at the ASD show in Las Vegas Convention Center, booth SU463
Next LIVE AUCTION, November 21st
Live Chat

Competitive Pricing for Retail Success

Competitive pricing for retail success

Competitive pricing is but one key to retail success

How long have you been operating a retail store? Are you working to open your first retail location? The science of retail shopping is fascinating and should be studied by veteran retailers, along with those looking to start a new retail bricks ‘n mortar business. The mind of the casual retail shopper experiences several emotional sensations throughout the shopping experience that can make or break retailer success. There have been countless, in-depth retail studies showing how the average person reacts emotionally to retail store layouts, merchandising, and product pricing.

Walk through any retail big box store and, whether you realize it or not, your experience has been well thought out through the science of retail merchandising. Aisle layout, product placement, merchandise displays, and overall color schemes are carefully designed. There are consulting firms that specialize in watching shoppers shop, and they do this with the intent to pass critical buyer information to the marketing department of large retail chain stores. These retail consultant firms watch shoppers browse; they track how many times shoppers read labels; and they record just about every customer move within a store. Talk about big brother!

Here are a few of the most enlightening metrics tracked when shoppers are analyzed:

  • Amount of time spent reading labels
  • Ratio of generic products purchased versus name brand
  • Average time spent within store entry and exit areas
  • Is signage being read?
  • What signs are attracting the most attention?
  • Upon entering a store, which direction/path are shoppers drawn to?
  • Ratio of window shoppers versus successful sales transactions
  • Average number of shoppers per day
  • Average dollar figures of impulse products sold during checkout process

There are literally hundreds of different ways to analyze customer actions and activity within a retail store. A good starting place for retailers who are interested in retail science would be a book titled “Why We Buy: The Science of Shopping” by Paco Underhill. Underhill, and his consulting firm Envirosell, have observed over 900 aspects of interactions between shoppers and store merchandising. Mr. Underhill’s book provides detailed information that can quickly be translated into increased revenue for any retail establishment– small or large.

Retail consumer data is important because decisions relating to store design/layout, merchandising and product pricing can have a huge impact on retailer success. With careful planning and thought, retailers will realize quicker product sell-throughs, higher average register transactions, and an overall increase of customer loyalty.

A successful retail operator should fully understand the emotional aspects of each and every retail transaction. Researching all aspects of retail business operations will directly increase bottom line profits.
If you desire to know more about the shoppers mind, I wholeheartedly recommend picking up a copy of Why We Buy: The Science of Shopping.

Rob Cyr, author of The Liquidators Guide, is an expert in the area of product sourcing and retail operations. His work has been featured on countless industry websites including the Fox Small Business network, TopTenWholesale.com, Apparelsearch.com, and other sites. You can read more about liquidation best practices at his site Liquidator’s Guide.

Share this Article

Related Articles

Best Cloud Based Email Services for Business

How To Avoid Getting Scammed By A Wholesale Vendor

Freedom Entrepreneurial Camp

Via Trading Auction Preview

A Day at the Swap Meet selling HEHSWCR

Selling Cosmetics on eBay with Hooked on Pickin’

A Day at Via!

Quick Tour – Via Trading Warehouse

Live Auction through the eyes of StevenSteph Resale Killers

Auction Preview with StevenSteph Resale Killers

Webinar: How to Buy Wholesale Liquidation Cosmetics

Webinar: Merchandising for Profit

Find and Sell Name Brand Overstock Products Online

Flea Market Selling Day

The #1 Secret of Elite eBay / Amazon Sellers

Interested in Cosmetics?

Barg-N-Binz Picks Via Trading For its Customer Service

Virtual Business

How to Transition from Amazon to Ecommerce

Leveraging Group Sites to Liquidate Merchandise

An Overview of Liquidations

How to Qualify a Supplier

35 Alternatives to Selling on Ebay

From Pallets to Truckloads and Beyond

How to Buy Liquidation Cosmetics

Merchandising for Profit (Discount Stores)

Training Webinars

Lynwood Warehouse Opening

General Selling Tips

Selling Tips for Retail and Discount Stores

eBay Tips and Resources

General Online Selling Tips

Craigslist Resources

Online Vendor Resources

Via Trading Recognized as CA Small Business of the Year in 2014 (dist. #63)

Wholesale Export Success Story

Maximizing your Flea Market Success

Brokering Success Story

Yard Sales & Multiple Channels Success

Yard Sales Profits in Retirement

Home-Based Business Success Story

Flea Market Success Story

Merchandising Tips for Flea Markets

101 Hints & Tips for Flea Market Success

Retailing for the Community

Insights for Brick & Mortar Retailers

Retail Store Success Story

Floor Standing Retail Displays

Merchandising Tips for Discount Stores

ebay Success Story

Online Cosmetics Success Story

Insights for Online Retailers

Selling on Amazon

10 Tips to Starting a Successful Online Business

Do’s & Don’ts of Effective Email Marketing

Discount Store Merchandising

Webinar: Flea Market Vendor Training

Starting a New Resale Business