It comes to your site, to your company. And you have even better data than any other in your computer. You must read differently than ever before. The investment behaviour of people at your location reveals about your handyman customers at the counter. Ensure that you have yourself everything you need.
The challenge lies in a different consideration of the data. The customer wants what the correct perspective and what he is willing to pay. The art of analysis lies in the combination of customer requirements with the expectations of the company on the contribution margin. Only this combination indicates which items as expensive and which are perceived as good value for money. In the past, incorporating the customer perspective it failed, that the reaction of customers to price changes was hardly known.
So setting the selling prices was left to often very strongly the “gut feeling” individual seller, the price recommendations of industry or range-homogeneous considerations. Analytical considerations based on the buying habits of customers, were often back in the pricing. But precisely these considerations carry considerable potential to increase the contribution in itself. The “Featured article” solution product represents a such proven analytical approach. This solution is not only mathematically sound, it converts rather pragmatically and systematically as socio-psychological aspects (buyer awareness) in a holistic approach. The “price sensitivity” is determined for each article. Following assumptions underlie the analysis: frequently requested items are priced known rarely requested article requested items are priced unknown rare rarely requested article pay no price comparison exhibit more specifically requested properties on (emotional or technical characteristics) rarely popular articles charge the company with higher costs as frequently requested article – insufficient capital envelope, loss of value,… The blue line shown in Figure 1 for the distribution of the contribution can be expected. The contribution should increase with decreasing access. The The sold articles of the considered trading company are sorted by the frequency of the Act of purchase price sensitivity analysis the focus article”.