Being price competitive is important if you claim to have the best prices

I am not a fan of claiming to have the cheapest prices, the best prices in town or offering a price guarantee that we will not be undersold.

It is my experience retailers making such claims are not the cheapest, offering the best prices or ensuring they deliver the best price so they don’t pay out on a guarantee.

Some product categories in newsagencies lend themselves to price comparison. Ink is one such category, making it important to get right so that you can show, rather than tell, that you have a compelling price offer.

HP 950XL is a popular ink product. It is one of those ink products people look at to judge your pricing policy on ink.

In two different newsagencies I visited this week I have seen HP 950XL priced at $43.20 (as shown in the photo) and $61.00 in another newsagency a short drive sway.

The price difference is a surprise. In the more expensive newsagency the pitch is that their prices are the best. They promote a price guarantee with a 5% discount off the low price if it is less than their price. The cheaper newsagency makes no such claim. They are simply cheaper. Probably a bit too cheap when you research the price for HP 950XL at Officeworks and online.

My feeling, having researched online and offline prices for HP 950XL, is that it should be prices at $59.99 or $99.99 for two as part of an everyday low ink prices strategy. That is my approach.

Ink purchases are often last minute. Selling two cartridges at a lower price today is a good strategy given how people tend to purchase ink. This is my experience in the city at least. In regional and rural areas things could be different.

You need to be price smart – making the most yu can while being seen to be competitive with major competitors.

But back to the two newsagencies I visited this week. I was surprised that the business making a noise about price was the most expensive. What is even more confusing is that the website for the group the more expensive business is part of has a different price, more expensive again.

Inconsistency between online and offline price can turn off shoppers. As more newsagents transact online through their own websites and group websites they will need to be disciplined on price. Otherwise, they risk shoppers turning off when they find different online and offline prices for the same item.

It is easy for these mistakes to happen. The challenge is shoppers and competitors are unlikely to bring them to your attention.

Why ink matters to newsagents.

Newsagents keen to pitch they are price competitive should consider ink as an ideal product category through which to do this. My advice is to research Officeworks, Australia Post, Harvey Norman and JB HiFi. Pitch your price close to theirs. Ideally, just below. They are your main competitor. While beating another newsagent might make you feel good, the other newsagent is not your biggest competitor by volume.