The price is right

February 17, 2015By Focus on the Pharmacy Front End Blog, Independent Pharmacy

part five in the Total Recall blog post series by Dave Wendland

Within three seconds a passersby should be able to ascertain whether you are a value-driven, modestly priced, or premium/luxury retailer. Since this is one of five factors that form an opinion of your drugstore within just a few seconds, it’s definitely worth devoting some attention.

As a reminder, here are the four other factors that become memory joggers to your current and potential customers:

Your price sends a strong message to your market – it needs to be consistent with the value you’re delivering. It’s not a tactical component that you adjust on a whim to level of pricestry to attract new customers or raise your margins. It’s a strategic element and your approach must be immediately identifiable.

Make no mistake, consumer decisions are influenced not only by a retailer’s actual prices but also by their perception of the retailer’s price image.

In addition to using price-related information to form an overall impression of the level of prices in a given store, consumers also rely on non-price information to inform their price image impressions. Factors such as the store’s physical attributes, product assortment characteristics, the level of service, and store policies are likely to influence consumer beliefs about a retailer’s price image.

How can you achieve the price image you desire so customers can grasp it in three seconds? Here are five elements that can work together to deliver a consistent pricing message:

  • Signs and promotional elements
  • Prior experience with featured brands
  • In-store and traditional advertising
  • Store appearance (opulent versus simple)
  • Word of mouth – impressions from others

So ask yourself this, are your prices right? And are they consistent with the value you are delivering to your patrons?

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