DE-EVOLUTION In The Market: Part 2

In watching market data - specifically selling prices, nearly to the day - when these manufacturers shipped the "free goods bundle" to retailers, the market asking price for those products dropped by, you guessed it, 8%! What this means is retailers were "dollar cost averaging" t...

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Bibliographic Details
Published inThe Shooting Industry Vol. 69; no. 8; pp. 40 - 41
Main Author Yacek, Hank
Format Trade Publication Article
LanguageEnglish
Published San Diego Publishers Development Corporation 01.08.2024
Subjects
Market prices
Profitability
Profits
Retail stores
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Summary:In watching market data - specifically selling prices, nearly to the day - when these manufacturers shipped the "free goods bundle" to retailers, the market asking price for those products dropped by, you guessed it, 8%! What this means is retailers were "dollar cost averaging" the goods they received, slapping on their normal margin and tossing them out on the shelves, prideful they now had a price better than the shop across town. Time and time again when we examine where market price shifts right after these programs ship clearly indicates retailers were happier handing that extra profit potential to the consumer based on the misguided ideal "lowest price is best." CHANGE OF FOCUS NEEDED This is just one example of many highlighting how retailers focus more on market price instead of operational efficiency, fundamentally understanding their operational expenses and using this knowledge to set their pricing strategy.
ISSN:0037-4148