The Australian independent retail sector has many similar challenges to the UK’s. In our ongoing series Aussie retailer and EPoS manufacture Mark Fletcher gives his top tips on how to meet these challenges.
I have seen several situations recently where newsagents in Australia have been able to increase the price of popular products and maximise margin without any adverse effect on the volume sold. In one case the newsagent increased the price of a range of plush from $7.95 to $9.95, in another they increased their cardboard price from $1.50 to $2.20 and in another they increased the price of a popular counter line from $4.40 to $4.95. In the newsagency where they increased the selling price of cardboard they have added at least $3,640 to their bottom line in a full year as a result of their price move. No extra work, no lost sales – just extra profit.
My question for retailers reading this is: what prices could you increase without impacting sales volume?
If there are items then do it! The ideal items are those others cannot easily purchase elsewhere. This is not something to procrastinate about. In fact, the timing right now is ideal with the lower exchange rate and rising labour and rent costs you have justification for increasing prices.
So, what prices could you increase without impacting sales volume? Let us know your thoughts in the comments below