• 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

        • Shared office spaces tentatively reopen

          Shared office spaces tentatively reopen

          Friday 5th Jun 2020 by clareb
          Across the network of 5,000 shared office spaces in the UK, the task of being able to reopen safely has been a huge one – requiring careful planning and determination in the face of negative press and Government restrictions. Reopening a share...Read More...
          Experts reveal essential preparations ahead of shop reopening

          Experts reveal essential preparations ahead of shop reopening

          Thursday 4th Jun 2020 by clareb
          As England prepares for non-essential shops to re-open from 15th June, retailers will be preparing how best to open safely and in accordance to social distancing and cleanliness measures to encourage customers to return to shop in-store provided...Read More...
          Technology vendor product investment speaks volumes

          Technology vendor product investment speaks volumes

          Thursday 4th Jun 2020 by clareb
          Often, enterprises expectations with regards to product investment aren’t met by technology vendors. They question where all the money they spend on support and maintenance contracts with software companies goes, especially in the context ...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