Archived Topic
Topic ID 5330
07/06/2010 by Arty
Transparent Pricing in Multiples?
As an owner of a small independent business in Hertford, I am always aware of our need to provide good service and honest pricing. We compete with the large multi-nationals by offering discounts and promotions usually based on our own suppliers giving us extra margin to allow this.
It was recently pointed out to us that W.H.Smith were selling Creative Art Kits 'reduced' to £4.99 from £6.99. As we understood it, the rrp was £4.99 in the first place (the price we sell them at) so that the 'flash/ reduced sticker' was a false incentive for an unsuspecting customer to buy.
Up in Bengeo tonight, I too was lured into the incentive pricing of the Co-op, by the words 'Half Price' on a small punnet of raspberries, reduced to £2. The original price? £4.
Now I believe the trade description act states that that price has to have been charged before for 28 days previously - but I find it very difficult to believe that the dear old Co-op had actually sold them at that price or indeed sold any at that price.
At a time when many independent businesses in Hertford are finding trade challenging, isn't it time some of the multiples were just a little bit more transparent with their marketing - or should we, as independents, adopt some of these tactics...If you can't beat them, join them?
0 replies
Archived Replies
Reply ID 74749
07/06/2010 by Enoughofthat
I've just watched Mary Queen of Shops and inspired, I'm likely to talk beyond my knowledge. So expect to dismiss as ill-informed nonsense the following.
I doubt the Coops raspberry pricing chicanery is depriving you of sales and although WH Smith may stock some similar product lines as you, they are selling to a different crowd.
You are a specialist art supplier who's core customer is the hobbyist who takes their art somewhat more seriously than someone looking for something to keep the kids occupied on a rainy afternoon. How ever WH Smith may use slight of hand to increase the perception of value in the mind of an impulse buyer, it's unlikely to have been to one of your customers. Adopting the same tactics is unlikely to drive up your sales. I'd expect you to focus on what makes you different from WH Smith rather than try to be the same.
I'd cross your threshold looking for a degree of higher quality product and I'd be receptive to the suggestions of complementary purchases from a knowledgeable and sincere advisor. Providing I felt I hadn't been manipulated or over charged and especially if took away a free nugget of technical advice that inspired me practice my hobby regularly, I'd very likely be back again.
Just my twopenny worth, I'll post again after the next edition of Junior Apprentice.
Reply ID 74751
08/06/2010 by dennismoore
quote:
Originally posted by Enoughofthat
I've just watched Mary Queen of Shops and inspired, I'm likely to talk beyond my knowledge. So expect to dismiss as ill-informed nonsense the following.
I doubt the Coops raspberry pricing chicanery is depriving you of sales and although WH Smith may stock some similar product lines as you, they are selling to a different crowd.
You are a specialist art supplier who's core customer is the hobbyist who takes their art somewhat more seriously than someone looking for something to keep the kids occupied on a rainy afternoon. How ever WH Smith may use slight of hand to increase the perception of value in the mind of an impulse buyer, it's unlikely to have been to one of your customers. Adopting the same tactics is unlikely to drive up your sales. I'd expect you to focus on what makes you different from WH Smith rather than try to be the same.
I'd cross your threshold looking for a degree of higher quality product and I'd be receptive to the suggestions of complementary purchases from a knowledgeable and sincere advisor. Providing I felt I hadn't been manipulated or over charged and especially if took away a free nugget of technical advice that inspired me practice my hobby regularly, I'd very likely be back again.
Just my twopenny worth, I'll post again after the next edition of Junior Apprentice.
Although Arty's shop does sell specialist art materials, I should imagine that even in Hertford the market for such things can't be that big. He does sell a lot of similar stuff to W.H.Smith so it must be incredibly frustrating when such a huge chain, trading largely on their reputation of being a long established and trustworthy British institution resort to the cheap tactic of trying to fool customers into thinking that they're better value when they are not.
Reply ID 74752
08/06/2010 by Mack E. Avelly
I'm with Arty. Sleazebag tactics from W.H. Smug - apparently. Can't comment on the coop and their raspberries though.
Reply ID 74754
08/06/2010 by codek2
the price sold previously for 28 days can be any single store in the chain. So you'll probably find there's a tiny coop in London somewhere, or even an airport, where they did manage to sell a couple of those packs for £4!
Do you remember a clothing shop that had permanent 70% off, officers club i think it was called? thats how that worked - the full price was only sold in one store, which was tiny, had very few staff, and only one of each item!
Kind of against the spirit of the law really!
Reply ID 74756
08/06/2010 by gemipicorn
quote:
Originally posted by dennismoore
quote:
Originally posted by Enoughofthat
I've just watched Mary Queen of Shops and inspired, I'm likely to talk beyond my knowledge. So expect to dismiss as ill-informed nonsense the following.
I doubt the Coops raspberry pricing chicanery is depriving you of sales and although WH Smith may stock some similar product lines as you, they are selling to a different crowd.
You are a specialist art supplier who's core customer is the hobbyist who takes their art somewhat more seriously than someone looking for something to keep the kids occupied on a rainy afternoon. How ever WH Smith may use slight of hand to increase the perception of value in the mind of an impulse buyer, it's unlikely to have been to one of your customers. Adopting the same tactics is unlikely to drive up your sales. I'd expect you to focus on what makes you different from WH Smith rather than try to be the same.
I'd cross your threshold looking for a degree of higher quality product and I'd be receptive to the suggestions of complementary purchases from a knowledgeable and sincere advisor. Providing I felt I hadn't been manipulated or over charged and especially if took away a free nugget of technical advice that inspired me practice my hobby regularly, I'd very likely be back again.
Just my twopenny worth, I'll post again after the next edition of Junior Apprentice.
Although Arty's shop does sell specialist art materials, I should imagine that even in Hertford the market for such things can't be that big. He does sell a lot of similar stuff to W.H.Smith so it must be incredibly frustrating when such a huge chain, trading largely on their reputation of being a long established and trustworthy British institution resort to the cheap tactic of trying to fool customers into thinking that they're better value when they are not.
I totally agree, it is hard enough for a small independent to compete with the big chains as it is, without tactics such as these.
I have to admit I used to think of Arty's shop as only catering to a specialised market and so never thought of going in there for more general everyday needs, such as stuff for the kids etc (sorry Arty [:I]). It is only recently that I have realised quite what he does do and now when I do have get something of a creative nature he is my first thought rather than the last.
It's all down to perception ...... and tricks like that from Smiths only serve to reinforce an incorrect one.
Reply ID 74788
10/06/2010 by Marilyn
If I can avoid W H Smith I do, much prefer the likes of Hertfordshire Graphics etc where they know what they are selling..............
Reply ID 75285
01/07/2010 by jez_p
I can't remember the last time I bought anything in WH Smiths.
Considering they are a large chain they don't seem to be very good at offering savings based on economies of scale.
8 replies