$8.99 for a bag of smarties that I can buy at a supermarket for $5.00 or at a discount confectionery shop for $4.00. I saw this in a shop at Brisbane domestic airport a week back. Crazy pricing.
Now, of curse, there will be factors impacting this: retail lease costs for one. The other big on being a captive market, little competition.
The prices were not turning shoppers off. Plenty of people were paying over the odds for stuff at this shop.
The experience had me thinking about the choices we make when we price items, especially readily available everyday lite=ms, like this bag of smarties. Our pricing decision tells shoppers something. It told me this shop is expensive and reminded my of why I don’t shop at airport shops.
One way to help shoppers understand your prices is to speak to factors that play into your pricing decisions. You could do this on social media or even by equipping shop staff with information.
If I sold these bagged Smarties, for example, and if my price was considerably lower than $8.99, I’d share the story from Brisbane airport on my social media to be grateful that I could sell them for less – hopefully not in a bratty way. That type of personal experience social media post can be a good way to share a pricing comparison that can reinforce your proposition.