We have been selling several specific plush lines at one of my newsagencies for just a few months. We priced the plush here differently to my other stores because of the store location, 10% lower. As we have seen sales grow now to close to $3,000 a month we felt it was worth pricing the product where it sells elsewhere.
The most popular branded range was increased from $8.95 to $9.95 – without any impact on sales. We’re thrilled since plush shoppers can become habit based shoppers. With rent increasing 5% year on year and labour increasing around the same, we need more traffic, shoppers buying more and GP to increase. This is why we look at what we sell items for – not to gouge but to achieve a price that works for us and the customer.
Every customer buying these items is offered an opportunity of cash off their next purchase with out discount vouchers program.
My experience is that we get more value by charging what I’d call full price and then offering a discount for a deeper basket than simply selling products at a lower price. Customer feedback is that the discount is seen as more of a reward.