How to Strategically Discount for the Long WeekendMay 10, 2022
We don't have to tell you Summer is around the corner, and with it comes long, hot days hanging out with friends at a park or patio, relaxing after a long week at work.
Like the weather, pricing compression heats up in the summer months as well, due to a variety of triggers. But you’ve got this. You have multiple strategies and tactics at the ready to help offset this profit-crushing trend.
During summer, customers will shift their focus to social gatherings and spending time outdoors. Having an agile product assortment that meets customer needs, and allows for multiple ‘add-ons’ to increase purchase totals, is critical.
Placing impulse items with similar products by the checkout, as well as training your staff to listen and ask questions at the right moments, will all help bolster your basket size.
As we’ve discussed, discounting isn’t bad when used strategically. Every store has slow-moving SKUs that need to be shed, but they must be perceived as offering guests value - especially if you have a discount retailer nearby.
So, how do you prepare for the long weekend? The impressive tips Nickko Lenda offers on the psychology of pricing suggest some best practices for visual merchandising when discounting for these events.
Consider these takeaways:
- Add space between discounted prices. Our brains confuse visual and numerical distance. The further you space those prices, the larger the perceived gap and/or price per unit.
- Arrange sale prices vertically. They’re easier for our minds to subtract, helping customers understand the value you’re offering. If the discount is minor, list it horizontally.
- Justify the discount. This will lessen the impact of the long-term pricing effect on customers. This way, when you remove the discount on the items next week, customers won’t see them as expensive
- Bulk flower purchases increase heading into the summer. Framing prices as per gram helps customers see the value in larger purchases, potentially removing the need for discounts.
- Retailers continue to push for May 2-4 support. Think outside the box. Week-long promotions using cross-category sales and category-basket building. Discounting is only one tactic of many.
Whatever your plan may be, leave enough time to create awareness for your team and your regulars. Ensure your plan is creating extra traffic as the weekend approaches. Don’t just discount items you’re already planning to stock.
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