Right pricing functions as key to the success of established fashion retailers. They know how the factors involved in the production up to the actual retail of their product affect their brand and their prices. To stay ahead of the game, it’s crucial for you to understand key aspects that lead to smart pricing.
Understanding Price in 4Ps of Marketing
Marketing’s 4Ps stand for product, place, price, and promotion. Think of these when you consider “value equation”, which is the impression left on the consumers based on the product’s quality in terms of its price. They decide on the purchase based on how worthy they think your product is of the price you give it. Do the clothes and accessories you sell live up to the promotion and cost you give it?
Seeking the advice of another professional or making a survey may help give you an idea on whether your prices are too high or too low.
As a manufacturer, make sure that your distributors follow the minimum price agreed upon to warrant the integrity of the product. Minimum advertised price (MAP) policy monitoring through online applications enables you to do so efficiently.
Pursuing this practice also ensures that all business activities are fair, especially in giving discounts. Otherwise, any inconsistency compels consumers to look for apparel elsewhere.
Online applications aimed at tracking prices reduce the effort and time needed to stay updated with your competition’s online equivalents. Depending on the tracker subscribed to, they can alert you of price fluctuations, sales, deals, and product reviews.
Staying ahead of the competition requires that you know their activities well, and trackers accomplish an important part of that job for you.
Fashion retailing, however glamorous, demands meticulous planning to pay off. The good news is that once you’ve familiarized yourself with this industry well, setting the correct price will be the least of your troubles.