The third feature in our 2018 Retail Trends, this month we’ll be looking into quality, and why does it so often come at a high price to the customer.
With BREXIT looming, and the uncertainty of whether UK will or won’t be leaving the EU single market, we’ve all got our knickers in a twist worrying about the potentially additional costs we’ll have to absorb, and some that we’ll have to pass onto our customers. And with so many of the big high street retailers downsizing and the booming e-retail industry, today’s consumers nevertheless are more demanding than ever, wanting quality, but at an attractive price. So how do retailers such as yourselves keep your costs down without compromising on quality? Well read on…
We’ll post in bite size chunks and don’t forget to check out our Next Steps at the bottom – questions every retailer should be asking themselves. Leave us a comment and let us know your experience. We hope this offers you practical ways to remain competitive in the years ahead. To download the full Retail Trends 2018 white paper, click here.
Quality at a good price
You’re browsing through a little store, and spot something really lovely. With your interest piqued, you grab it and check the sales tag only to gasp in surprise. Why on earth is it so much? Is it Gold-lined? Kissed by angels? Why does it always seem like the price tag on that ‘perceived’ low-ticket item is always one or two digits more than you’d expected to see? Unfortunately, the real reason behind your sticker shock, is much less exciting.
Production costs and the long chains involved in getting today’s consumer products to market, is growing exponentially. The complex number of supply chains that they go through before they hit our shelves, has reached mind-boggling numbers. And every element of that supply chain, wants a piece of the profit. In order to turn a profit, brands need to mark pieces high enough to cover their overhead fees, be it rent, shipping, staff, you name it. But today’s consumers are more demanding than ever, wanting quality, but at an attractive price.
In order to cater for this seemingly unreasonable nail in the coffin for many retailers, we are now seeing more and more businesses cutting back on some of those extra costs – the middle men!
Swoon Editions was founded with a rebellious spirit and a lofty ambition: to offer beautifully handcrafted furniture at fair prices. Swoon saw that well-made furniture was too expensive and it turned out there was a simple solution. The furniture industry has overheads that constantly threaten to push prices skyward – shops, warehouses and….you guessed it, middlemen. They scrapped the waste and created Swoon Editions as an alternative.
- Think of different ways to hit your target. How can you continue to offer your customers a good quality product and service but address any waste issues?
- What physical ways can you help to display the value of your products better? Educating your customers through effective store signage and ticketing, and visual merchandising will help you
do just that.
- Are you clearly displaying product information like origin, provenance, staff favourites, product of the month, who is the maker? What’s the inspiration behind it? Product benefits and credentials like organic material, fair trade etc? Showing a products function or story, adds value and helps to ‘justify’ its price tag.