WHILST WE hAVE ESCAPED TO THE COUNTRY-GANADOR CONTINUES TO OFFER CUTTING-EDGE INSIGHTS AND STRATEGIC SOLUTIONS TO RETAIL- AND SHOPPING CENTRE OPERTATORS ALL OVER THE COUNTRY. 

Don't do the December Discount Dance

Many retailers use discounting as a substitute for marketing. Discounting is a race to the bottom – and inevitable unprofitability.

Discounting is only appropriate for in the following two scenarios:

  •   strategic retail promotions (e.g. introducing new products)
  •  too fix buying mistakes (bought too much or wrong products) and it is not moving

Q: How do you know when a product is not moving?

A: When the stockturn (or sell-through rate) is below the benchmark for that category – and only then. (Never rely on instinct, use your POS.)

Beware the tipping point. Frequent discounting will lead you to a point where customers perceive you to be a discount store. Unless this is your strategy, make sure you manage discounts prudently.

Are you labelled?

Swimming against the tide like the Dixie Chicks

© 2017 Ganador Management Solutions (Pty) Ltd PO Box 243 Kiama, NSW, 2533 Australia