• UK retailers failing to recognise value of effective pricing

        • Around 96,000 UK retailers are putting their business at risk by failing to grasp the importance of an effective pricing strategy. The figure was published in a report by pricing and automation specialist, Omnia Retail, which questioned retail businesses on the scope and efficacy of their pricing processes.

          Although almost all (96%) of the organisations surveyed said they have a pricing strategy in place, 30 per cent said they don’t see it as a central part of their business. Amongst this group, 7 per cent of retail organisations said they view their pricing strategy as ‘unimportant’, with 13 per cent even saying it’s ‘very unimportant’. This suggests that their model doesn’t work, or that they do not dedicate enough effort to pricing in order to maximise its potential. 

          Only a quarter (27%) of the total retailers surveyed said they see pricing as a very important part of their business. 

          Omnia Retail also looked at whether retailers feel their pricing is always accurate. The research found that, despite the fact that the majority of businesses don't believe a pricing strategy is important, almost half (46%) admitted that a poorly-executed approach has damaged business in the past. 

          This is particularly pertinent given the widespread stock discounting and price slashing seen in the lead-up to Christmas. In an effort to meet consumer demand, many retailers indiscriminately cut their prices, resulting in lost profits and margins. However, certain models, such as dynamic pricing, can increase revenue and margins by helping retailers to price more intelligently.

          Sander Roose, CEO of Omnia Retail said, “pricing strategies are nothing new; in fact, there are numerous pricing models in today’s market. At its core, every approach aims to meet business objectives; for example, maximising profit or increasing market share. 

          “However, many retailers don't understand just how vital pricing is to marketing and sales, and too many retailers overlook the power that pricing can have on their margins and profits. Overall, the research suggests a clear disconnect for retailers between simply implementing a pricing strategy and actually using the pricing strategy to its full potential."

        • Stay up to date - Click here and register for FREE OEN online membership and enjoy unlimited access to a host of benefits including the exclusive members area of the website, downloadable business tools, current and back issues archive, priority breaking news alerts, weekly e news summary and the OEN app

        • Related Articles

        • Businesses can save up to £7000 by going green

          Businesses can save up to £7000 by going green

          Tuesday 18th Jun 2019 by clareb
          When running a more sustainable business, choosing to work with green-minded suppliers is a big step in the right direction. According to Carbon Trust, the average small business could save up to £7000 simply by improving their energy efficienc...Read More...
          Kyocera reveals only 61% UK businesses are mostly digital

          Kyocera reveals only 61% UK businesses are mostly digital

          Wednesday 12th Jun 2019 by clareb
          Organisations across Europe are moving evermore into a digital age, but the UK is losing ground in its adaptation of digital documentation, Kyocera’s Business Digitalisation in Europe Outlook 2019 has found.  The research provides an in-d...Read More...
          The rise of presenteeism in the workplace

          The rise of presenteeism in the workplace

          Tuesday 11th Jun 2019 by clareb
          Presenteeism in the UK has more than tripled since 2010, with 86 per cent of people observing it in the workplace last year compared to 26 per cent just under a decade ago.  In light of 1 in 5 people ignoring their doctor's advice...Read More...
                • About Us

                  OEN is the leading source of business news and information for buyers of office equipment, supplies and services within mid tier and up sized organisations. Our multi-platform approach delivers relevant, engaging and focussed content via our main printed magazine, bespoke guides and supplements, website, digital editions, apps, and newsletters with an unrivalled reach across the industry. A highly trusted and respected brand for many years, the print version of OEN last year celebrated its Diamond anniversary.

                  For our latest Media packs and more details on our range of services click here

                • View Latest Issue