QUESTION – how do I maximise the average sale per customer?THOUGHT – think strategically about priceAustralian businesses are absolutely addicted to competing on price. It is commonplace to advertise price, to demonstrate a predisposition towards competitive pricing, a propensity for claiming the ‘lowest price’, and a habit of blaming cheaper alternatives when sales are below […]

QUESTION – how do I maximise the average sale per customer?THOUGHT – think strategically about priceAustralian businesses are absolutely addicted to competing on price. It is commonplace to advertise price, to demonstrate a predisposition towards competitive pricing, a propensity for claiming the ‘lowest price’, and a habit of blaming cheaper alternatives when sales are below expectations. Four things can be said about this obsession with price: Price is important – to no small extent because of the emphasis business puts on itThere is no doubt that in some product categories the lowest price can winPrice is rarely the key to increasing marginsLower prices are not always the key to increasing sales Over the past 12 months, I have developed and helped to implement two strategies where sales have increased when prices were increased. In both cases, this involved repositioning the brand as a well-priced premium product rather than a more…