Beyond Cost Plus Summary: March 2016

Mar 31, 2016

 

Posts this month included real world example of weight-out (a kind of hidden price increase) discounting candy and unlimited free exchanges.

 

One post this month looked at something called weight-out, a kind of hidden price increase. It's kind of like de-sheeting, the practice of sneaking a price increase on tissue paper or paper towels by removing sheets from the package and leaving the price the same. In this real world example of weight-out you'll see how a supermarket raised the true price of their shrimp by reducing the weight of their (formerly) standard one pound pack size... and look at if florists can/should use a version of out-weighting to increase the price of flowers.

Another post looks at discounting candy to account for diminishing marginal utility. This topic gets covered a lot here, but only because it is so relevant to florists. Recognizing the diminishing marginal utility of flowers – and pricing accordingly – can help most florists sell more.

And finally there is another post that looks at an extreme version of the Costco/Amazon Prime pricing model. Here the customer pays a high up front fee for a battery (for recharging their mobile devices) with the promise of unlimited free swaps in the future.

Again – is there a way that florists can use this tactic to sell more flowers? There is, and it involves delivery fees.



Tags:
Category: Activity Summary

Sponsored by FloristWare

Beyond Cost Plus is sponsored by FloristWare, a flower shop point of sale software system, designed to help real florists be more successful. This sponsorship is part of their ongoing commitment to supporting florists.

FloristWare – flower shop software/POS system.

Related Material

One Size Does Not Fit All: Pricing Gas/Car Washes

No one size fits all when it comes to pricing/discounting. Different approaches appeal to different customers. The car wash gets this, florists should too.

Pricing in the Retail Flower Business at the 2018 GLFEE

Sessions on better (more sales, bigger profits) in the retail flower business is scheduled for the 2018 Great Lakes Floral & Event Expo.

3 Valentine's Day Pricing Tips For Florists

Three quick pricing tips retail florists can use to increase sales and profits at Valentine's Day.

Are You Selling Yourself Short?

Introducing and accounting for pricing strategies that will increase sales and profits in the retail flower business.

Be Careful What You Ask For (When You Ask For Too Little)

If you want your customers to spend more on floral arrangements you have to offer them more expensive floral arrangements.

Category List


Tag List


Tag Cloud



Archive

2018

2017

2016