Faulty Retail Pricing Strategy

What message is transmitted when you declare that price is all that matters?
Derrick DayeDecember 23, 20061 min

As I was driving through holiday traffic in the Tampa, Florida area this past week I heard a radio spot for Ritz Camera. The company’s CEO David Ritz proudly exclaimed “Price is all that matters!” These words and the strategy behind them cut deep. I was surprised to learn this was in David’s belief system.

What message is transmitted when you declare that price is all that matters?

Money is first.
Relationships are secondary.
The customer experience is not a focus.

What else happens?

Increased Price Sensitivity
Decreased Customer Loyalty
The Creation of a Transaction-Oriented Culture Within the Store

David could argue, ‘I’m just trying to motivate buyers to come to my stores.’

How well does price motivate us? Earlier this year I touched on a renowned human motivation study.

It revealed that ‘economy’ or ‘saving money’ was one of the weaker motivators. While motivators that had emotional ties were dominant.

It is yet another case for emotions over reasoning as a motivator.

Dull the sharpness of the pricing dagger.  Take the focus off from money and shift it to a unique, pleasurable experience. A place where the customer is wowed, relationships are built on much more than price.

David, we welcome your thoughts.

Here’s more on brand value and pricing.

The Blake Project Can Help You Grow: The Brand Growth Strategy Workshop

Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Growth and Brand Education

FREE Publications And Resources For Marketers

2 comments

  • Griffin

    December 23, 2006 at 1:21 am

    Great post and so true! Once businesses start taking Jay Abraham’s business model of the strategy of preeminence…then and only then will businesses see customers as clients who deserve to be treated with the highest respect and integrity.

  • Paul McEnany

    December 23, 2006 at 2:59 pm

    Well said. Reminds me of an iconic quote by David Ogilvy…

    “any damn fool can put on a deal, but it takes genius, faith and perseverance to create a brand.”

    It’s tough to watch the deluge of sale copy on tv every day, especially around the holiday. It’s depressing to see all that laziness.

Comments are closed.

Connect With Us