THE GOLD MINE IN RETAIL PRICING dellmart零售定价的金矿dellmart.pptVIP

DELLMART COMPANY W. FRANK DELL II, CMC DELLMART COMPANY AGENDA INTRODUCTION MINING OPPORTUNTIES PROMOTIONAL PRICING PRICING FOR PROFIT Objectives Identify pricing improvement opportunities Describe approach to achieve results Present new research Scope Retail Food Excluding perishable commodities Mass Merchant - Basics Excludes fashion seasonal Observation Much of retail pricing seems to be follow the leader Not unlike a dog chasing its tail Theme Price for the consumer Consider competition Price for Net Profit Not Gross Margin AGENDA INTRODUCTION MINING OPPORTUNTIES PROMOTIONAL PRICING PRICING FOR PROFIT #1 Slow Seller Why is an item a slow seller? Small consumer market Inadequate retail space Priced wrong 25,000 SKU’s In Typical Store 1,000 sell more than 1 case/week 4,000 sell between .5 and 1 case/week 20,000 sell less than .5 case/week SKU Universe Estimate 4 to 5 million Average store stocks .0056% Many unique items and opportunities Approach Case Study - Grey Poupon Selling 4 units/week Prices $1.79 Increased price to $2.79 Sold 4 units/week Increased sales $4.00 per store Increased profit $4.00 per store #2 Private Label If product quality is equal to National Brand Why is the price 25% plus lower? Low Retail Not The Answer Approach Value Concept AGENDA INTRODUCTION MINING OPPORTUNTIES PROMOTIONAL PRICING PRICING FOR PROFIT Why Promote? Create merchandising excitement Attract customers Present savings Show value Reward loyal customers Promotions Are Difficult Promotion Factors Breakeven on 11% Deal Low Private Label Share Moderate Private Label Share Promotional Index Promotion Conclusion Low Private Label share Moderate Private Label share AGENDA INTRODUCTION MINING OPPORTUNTIES PROMOTIONAL PRICING PRICING FOR PROFIT Activity Based Costing ABC is a cost allocation or assignment methodology Cost assigned based on the activities and drivers Activities are tasks within a process Drivers are factors creating costs GM Vs ABC Gross Margin Relationsh