The retail sector is a massively competitive one, and if you are in charge of managing and running either a single retail store, or a chain or stores across multiple locations it is important to understand the pricing points of every single item you sell. Alongside this there is a real requirement to understand how promotions and certain discounts work with different sets of customers, and at different times of the year. There are many different pressure points to consider when setting out the price of items and services within your retail store, as well as when it comes time to review and analyse the impact of those prices. With a retail price audit you can ensure that your company has the best chance possible of choosing the correct prices that make the biggest impact on your customers and your long-term profits.
Pricing strategies have to be correct for a company to continue growing in a scalable way that doesn’t alienate customers and suppliers. That is why it is so important for a company based in retail to conduct a fair and impartial price audit, utilising the experience and specialist skills of an audit company. This will help a company to analyse current performance within a single retail store or multiple stores, to understand the current pricing framework, and how to put together stringent plans to devise and implement future pricing structures. From here a company can understand the potential pitfalls and pricing problems ahead, and how best to navigate those for maximum effectiveness.
The first thing to be done when taking on a price audit is to define the wider targets and goals for the entire company. All individual price points and issues all feed into the greater whole of the company. Before you can understand the true impact of each individual price, you need to understand where you are heading as a company. By creating clearly defined corporate objectives you can begin to implement a pricing structure that helps you achieve those goals – whether you are aiming to measure goals through profitability, market share, or other metric types.
Once you understand the clear long-term objectives the company can begin to conduct thorough review and analysis of the current pricing structure through a price audit. Utilising the experience of a specialist audit company will help you to understand each individual price, the different prices within unique departments, as well as an in-depth understanding of all promotional codes, discounts and sale items.
All of this information then feeds back into an overall analysis and your team can be advised as to where positive change can be made within your retail organisation as far as pricing structures are concerned. The price audit should always be used as the basis and starting point for a new process of pricing. It is the data and information used to create and implement new pricing strategies that feed into the greater long-term targets and goals of the wider organisation.