For years retailers and suppliers and wholesalers have had mixed opinions on price-marked packs – the time has come for the fighting to stop! Overall, price-marked packs have grown in popularity with shoppers, and they have a critical role to play in achieving positive price perception. While not all shoppers are over-whelmed by the benefits of price-marked packs, an impressive 36% are positively encouraged to buy an item if it has a price-marked.
And many suppliers have benefitted, a leading frozen supplier recently introduced a £2 price mark on one of their frozen ready meals which generated a 50% increase in sales. Because of this uplift they are now planning on launching eight more PMPs especially for convenience.
Key reasons shoppers give for choosing PMPs, according to him!, are ‘i’m confident I’m not being overcharged’, ‘so I don’t have to ask the price’ and ‘better value for money’.
So why do price marked packs still cause so much discussion and debate within the industry? “The big issue is getting the right price and margin – satisfying different types of retailers, in different regions, with different customer demographics is difficult” says Katie.
Suppliers and retailers need to understand the most relevant price points for their specific categories - they certainly don’t necessarily need to be a discount on the RRP. Then they need to ensure the price-mark is communicated to shoppers in the most effective way, on the packaging and shelf, for maximum impact.
To help end some of the confusion over PMPs, him! research & consulting is carrying out focussed research to gain insights into how, why and when suppliers should use price-marked packs to grow sales. To find out more please contact natalie.button@him.uk.com 020 7611 0409.
Tags: convenience, retail, retailers, value, wholesale
Posted: 14/07/2011 16:51:46
by
Georgina Wild
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