Why We Buy - Price #consumer

Price is the first thing retailers and shoppers think about in today's market. Undoubtedly for retailers it can be the difference between a profit or a loss. For shoppers today it often is the difference between a purchase or walking away. So, if it is so important to the business, why do many retailers appear to play fast and loose with this most important consumer cue ? Working with clients I have sat in on many discussions around pricing strategy and tactics, and the topic is often filled with conjecture and speculation. Retailers should adopt a systematic, evidence-based approach to pricing decisions. Working with one retailer, we added a $1m annualised to the profit line through building an evidence-based decision model, without any noticeable drop in sales. How much do you know about your shoppers' response to pricing changes ? It should be simple. It IS important. Insight pays.