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Think carefully when you price products

wrongpriceNewsagents often bemoan that plenty of what they sell is at a fixed price: magazines, newspapers, cards. Yet I often see examples of newsagents not making the most of appropriately pricing the products over which they do have control.

A newsagency I visited earlier this week had a plush item priced at $33.00. If they really thought stye could get $33.00 for the item they should price it at $34.99 as there is little or no apperceived difference between the two prices.

$33.00 is a nothing price. It’s like having a bet each way. Either price it at $29.99 or $34.99 but not $33.00.

Whether you choose $29.99 or $34.99 depends on the price the product can hold, whether you run a loyalty program and how good your merchandising is.

Think about pricing. Take your time. Experiment. Price with clarity, respecting pricing psychology and making the most for your business over the long term that you can.

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Newsagency management

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