Monthly Archives: November 2016
In retail businesses, it’s safe to say that prices are invariably set by owners be they individuals or corporate, or by managers using pricing conventions provided by the ownership. This only makes sense as pricing is the revenue side of the bottom line.
When NextGen started working with resale stores, we expected to find the same. Much to our surprise, pricing in a number of children’s and women’s resale establishments is left largely to employees.
Prices set by employees are rarely optimum when compared to prices obtained by stores in comparable markets; they are most always on the low side. But as damaging as the profit loss commonly associated with employee under-pricing, is the price inconsistency that comes when employees are left to price largely on their own. The result is a loss of customer trust. With inconsistent pricing comes customer uncertainty that the tag price reflects value, and the consequent declination to pay the asking price ( i.e., buy) for items with unfamiliar labels. Translation > lost sales.
Owners need to own their pricing. While some employees who’ve been pricing welcome a company pricing system and the reduced anxiety that comes with it, others resist giving up this control. Indeed, NextGen has had a number of owners decide against the pricing system for fear of losing valued employees vested in the existing pricing—their pricing. Even with employee support, if customers are accustomed to employee under-prices, prices cannot be bumped abruptly. Prices must be adjusted incrementally in order not to sour longstanding customers. Fortunately, the mixed price/value association characteristic of most employee pricing practices, can effectively mask modest price changes.
The time is always right to take control of your pricing, … to take control of your business.
The Women’s Fashion Pricing System is created to make pricing easy—to take away the anxiety that comes with being unsure of how to go about it.
If you can read the label in a piece of clothing (for example: Ann Taylor, J. Crew, etc), you can price. All you have to do is enter the category in the space provided (blouse, sweater, etc), and then enter the brand!! I’m not kidding! The system will prompt you to fill in the information and then show you the appropriate price range, which you can select or adjust. There are no tricks. It’s very clear cut.
Our price ranges have been selected from information on pricing that we have collected from several successful consignment stores across the country. The suggested prices are prices that these items have sold at…proven sales. We give you a price range for each item is so that you have the ability to adjust the price as needed according to other variables, such as condition, age, locale, and demand. The important thing to remember is that we give you a price range—not just one price. You have the freedom to choose the price that is appropriate for your shop, but with confidence, that this range of prices is the right one.
Your staff can price with the same confidence. All they have to do is enter the category and the brand, follow the prompts for the additional details and the price range will come up. If they are very new to pricing, they can choose the mid point price and it will be a safe option. Of course, you can always enter any price you choose, but if you stay within our price range, you can be sure that you are pricing appropriately.
This is an amazing product! Your entire staff can price after a couple of hours with this system!
Talk to you soon,