THE LAST PIECE OF THE JIGSAW.
MAXIMISING PROFIT FROM THE "VALUE" PRODUCTS IN YOUR SUMMER PRODUCT MIX.

In this last of three articles about increasing profit,  we look at merchandising the "value-for-money" segment of the specially selected summer range.  This platform involves three planks - and all of them are important


Would you like to check back on the first article (Click Here!)  where we considered the overall economic environment, and then based our product ranging strategy on our surroundings?

The product ranging placed less importance on "middle-of-the -road" products, and more emphasis on both the high end and the low end.  Would you like to check back on the October article (Click Here!)  and see how we handled the premium products with very fine pricing?  That was counter-intuitive, but your unpredictability gives you a real edge in the market.   You take the premium product sales that others are losing, and your pricing is boosting confidence in your competitive strength.

Now it's time to look at the "value-for-money"products added to the range for this Christmas sales season.

First, your visual merchandising has been set up using the guidelines last month for the premium lines.  No need to worry further.

Second, your extensive advertising program  is already running , pounding your premium offers  at great pricing.  No need to worry further about that , either.

Third, display the "value" products alongside the premium items, but in a 'subordinate" position.  What constitutes a "subordinate position" will vary from place to place.  The premium products are always placed to take maximum attention - the "value" lines taking the second spot.

Now, let's get to pricing.  What is your target mark-up?  Use it on all the "value-for-money" lines this month, except for those landmark lines you know won't carry that price.  You will be at the top end of the price spectrum, but that won't be a problem.

It's not a problem for two reasons.  In the first place, the people buying the "value' lines need them.  These people are in herd times, and any purchase is a "must buy"!  In the second place, your competitive prices on the higher priced lines give a "halo" effect on all your pricing.  Where that is not good enough, you have a margin of discount you can use to get each difficult sale - applied on a case by case basis.

OK!  Now you are set for this most important period of the profit cycle.  Your product lines are in place, your advertising is running, and your pricing is pitched to make the most of people's buying intentions in the present "two-speed" Australian economy.

Go get 'em!


Like to talk some more about this topic?  No obligation, of course.   Talk to us Here!

BREAKING NEWS!

What browser do you use to visit the Internet?

Most people use Internet Explorer, the Microsoft browser integrated with the "Windows" operating system.  Widely recognised as being a security nightmare, I.E. is attributed with being the main cause of security problems in the "Windows" system.  Many have been waiting for the release of the latest version, "I.E. 7", first breaking ground last week.

Now, industry commentator "Tech Republic"  points to serious security flaws arising even before it makes official release.  "The long-awaited Internet Explorer 7 debuted last week—and a brand-new flaw promptly debuted a day later" says the latest news release from this authoritative source.  See the full article here.

Firefox 2Break free from the Microsoft juggernaut!  New "Firefox 2" also debuted last week, with many new features to keep it ahead of the I.E. nightmare.  Free to download, easy to install, and now featuring spell check on forms you fill in, this new Firefox is faster, and more secure.

Additionally, it allows the full functionality of The Red Zebra, without the constant intrusive annoyance of needless security messages.  Enjoy the Internet.  Use Firefox 2, available now!  Click the icon to download now.




- "MANAGEMENT MEMOS" ENDS -

Any advice, information or comment contained in this document is general in nature, and should not be relied on as the basis for any specific commercial, business, employment, or financial decision. Specific advice should always be obtained for each individual circumstance. Accordingly any advice, information or comment contained herein is for general guidance only.