There’s obviously, and justifiably focus on achieving a +50% GM and addressing COGS to get that in line. That said, while doing store audits, I wonder about how founders arrive at their GTM list price. Three examples come to mind:
1. Brands with limited direct competition – Is their a targeted price point? Why not take the price up a couple deciles & if it’s about a threshold, potential address it through TPR’s at specific retailers.
2. Brands with ‘competition’ – I regularly see brands (actually 4 of the 6 I audited in the last 2 weeks) who are priced $.20 to $.40 below who I would perceive as a competitor. How is that pricing arrived at and is there a way to address short or mid-term?
3. Brands who live with #1 or #2 above for an extended period – What research is being analyzed to address these differences?
The reality is that in this environment, consumers are price conscious. If there are easily controllable areas to analyze, test & revise, and we all know there’s margin pressures, why not spend more time & effort on these strategies & tactics that address your consumer perception at the point of sale?