THE "CHESS GAME" OF RETAIL PROMOTION

FOR THE PACKAGE STORE RETAILER

Let’s face it, retail pricing is just one big “chess game.” The difference is this board has three sides. On one side is you, the package store retailer. The second player is your competition. Finally, the third player is the consumer.

Everyone is attempting to win the game. “Winning” is defined differently by each side.

You want the majority of the retail customers to come to your store and buy their products from you, giving you a decent profit on those sales. The competition is looking for the same thing. The difference is in what the consumer is looking for. They want a number of things:
1) A good price
2) A great selection of products
3) A comfortable, friendly place to shop
4) Easy access (including the parking)

Most local package stores run an ad of some type, including the items being promoted at a sale price. Some use mailers, while others use flyers. No matter which medium is used, this is the way to communicate to your potential customers.

In these economically challenging times, the average customer reviews these ads in whatever form they receive. The savviest customers may bring the various ad features along on their shopping trip, comparing prices from store to store.

Here is the ‘chess game” element that can give you a pricing advantage.

Instead of promoting a 6 pack or a 12 pack in your ads (both easily compared with your competitor’s pricing), why not promote a “five” 6 pack deal or a “three” 12 pack deal? I am not insinuating that your customers are “slow”, but there is a “laziness factor’ involved in all shopping decisions. If it is too hard to determine the bottom line savings, most customers will go with what they think is the best deal. Our industry, along with grocery stores, have brainwashed the consumer to look for certain packages and deals. By throwing them a slight curve, you can make it more difficult to compare your promotional prices to your competition.

Try it in your next promotional feature and see if you can “checkmate” your competition.

We invite your comments, questions and/or suggestions. To add one, simply go to the end of any post and click on the word "comments," in comments to links to this post. That will take you to a site where you can leave your thoughts.

Remember, training seminars are available to suppliers, distributors and retailers. Contact us for information on specific details, time lines and costs.

Thank you for your continued support.

Don Apostolos

The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net