The price experts' blacklist: 7 mistakes you mustn't make during Black Week
Before Black Week there is a lot to think about, both what to do and what not to do. Martin Granberg and Jan Tallroth at Priceindx share seven tips on what to avoid to increase profitability during Black Week (and the remaining 51 weeks of the year).
1. You lower the price only with the help of campaigns
If this is your strategy, you have probably (to comply with price legislation) now locked your prices at a level that is not relevant to the customer. It will require a large increase in sales during Black Week to make up for that volume loss. Will all your products handle it?
2. You only use broad campaigns and avoid tactical sales
Tactical use of campaigns means, among other things, selecting the right products within the brands, the ones that reign best in the particular campaign. Broad campaigns instead result in a margin loss on those products that are not as campaign-sensitive and at the same time lower the price perception of the brand.
READ ALSO: Superdeals or regular price - huge differences in this year's Black Friday campaigns
3. You do not use segmented pricings
If you see all categories and brands as equally price-sensitive and implement equivalent price reductions across the board, then think again! Depending on a number of factors, the different categories and brands are differently price-sensitive, which means that this year you will once again lose unnecessary marginal kroner.
4. You neglect to identify and work with your internal KVIs
By working both with campaigns and dynamic pricing on your internal KVIs, for example products that you know drive higher receipt values, or that are extra important for your maintained turnover, you can with greater focus, have greater effect and keep margins up.
READ ALSO: Ola Nevander: This is why Black Friday will be a long shopping party
5. You also neglect to identify external KVIs
By seeing what the market is asking for, you can drive customers via popular and traffic-driving products. If you are also out in good time (next year perhaps) you can ensure that you have and sell a greater proportion of the products that are in demand.
6. You are not aware of, or ignore, that prices change more often than normal
For those products that are not on sale, the price changes significantly more often during black week than during a normal week. By being aware of this and therefore reading prices more often, you get a more up-to-date picture and can more easily win the deal.
READ ALSO:
Mikael Sydner: The desperation before Black Friday kills the desire to buy
7. You neglect to analyze and learn from last year's black week
How did last year really go, volume went up, but did you make the money you could have made? What will you do differently this year? Or do you just follow the old tried and true ruts?
These were tips on what you should avoid now both before, during and after black week. Much of this must also be avoided for the other 51 weeks, but is for many extra important right now.
Jan Tallroth,
Chief Growth Officer Priceindx
Martin Granberg,
Chief Strategy Officer
Read article at market.se