Run a profitable clothing store

Chapter 27 Main Pricing Strategies of Smart Stores (1)
This chapter first describes the main factors affecting clothing prices, as well as some factors that cannot be ignored, and then finds out a reasonable pricing strategy based on these factors.In the actual process of selling clothing, you will encounter various situations, and how to deal with them are described below.

Several main factors affecting clothing prices

Clothing prices are mainly affected by the following factors:
1.cost

Clothing stores should take cost as their lower limit when setting clothing prices.Under normal circumstances, if the price of clothing is lower than the cost of clothing, this means that the resources paid by the clothing store cannot be compensated, and the business process will be meaningless.Therefore, from the store's point of view, the price of clothing should be higher than the cost.However, from the customer's point of view, the basis for customers to accept prices is sometimes not the cost of clothing.

Clothing stores should mainly consider two factors, fixed costs and variable costs, when setting prices.If the store is a low-cost operator compared with competitors, it will obtain excess profits by maintaining the same price level as competitors, and this part of the extra income can be used to improve the operating conditions and improve the overall competitiveness of the store .

If compared with competitors, the clothing cost of the store is higher than that of the competitors, the store will have no more room for price choices. For the long-term interests of the store, the store can only lower the price of clothing, even if it even reduces the current income.

(1) Variable costs.It mainly includes transaction tax, value-added tax, retail tax and circulation, transportation costs and certain price risk costs.

(2) Fixed costs.The fixed cost is the critical point for the store to set the price, and it is the main part of the currency performance of the product price.Therefore, the level of clothing fixed costs has the greatest impact on the price of clothing stores.Fixed costs are mainly composed of several aspects: fuel and power costs; costs of raw materials and auxiliary materials; wages and various benefits; packaging and decoration costs; store management costs; depreciation costs of fixed assets.

2.Market demand

In general, the price of a commodity is affected by the cost of the commodity, and the demand for the commodity is constrained by the price of the commodity.The principle of economics states that if other factors remain constant, changes in the quantity demanded by consumers for a commodity are in the opposite direction of changes in the price of the commodity.If the price of a commodity falls, the quantity demanded will rise, and when the price of the commodity rises, the quantity demanded will decrease accordingly. This is the so-called law of demand.The law of demand reflects the general relationship between changes in commodity demand and commodity prices, and is an important factor that stores must consider when deciding their own market behavior, especially specific prices.The store's "small profits but quick turnover" is the full embodiment of this truth.Another example is that when the demand for a certain clothing in the market in a certain period increases, more profits can be obtained by appropriately raising the price; on the contrary, it is appropriate to take measures to reduce prices.Therefore, the market demand situation is often the main reference factor when stores set commodity prices.

3.Reordering of market features

(1) The seasonality of clothing.Generally speaking, the price of clothing with strong seasonality will fluctuate greatly. When the season is suitable, the price will be higher; after missing the season, the price will drop rapidly.

(2) Purchase frequency.For clothing with high purchase frequency, a low-price strategy of small profits but quick turnover is generally adopted. On the contrary, for high-end durable clothing with low purchase frequency, the profit margin should be higher and a high-price strategy should be adopted.

(3) The degree of standardization.The possibility of price changes of non-standardized products is generally greater, and the possibility of price changes of products with a higher degree of standardization is generally small.

(4) The characteristics of the commodity.Commodities with characteristics such as perishability and perishability have relatively large price fluctuations.Usually the price is high at the beginning, and the price will gradually decrease as time goes by.

(5) The scale and competition pattern of clothing stores.It is often difficult for small-scale clothing stores to set prices independently based on the cost of their own products and expected profits, but based on the prices of similar products in large stores.If it is in an advantage in the competition, the store can adopt a strategy of raising prices appropriately; otherwise, it should adopt a strategy of lowering prices.

(6) The quality of clothing.Some clothes that meet people's psychological needs with new, famous, and high-quality features need to be priced higher, otherwise, they may lose the motivation to buy.

4.competitive situation

The degree of freedom of clothing store pricing will vary with the competitive situation of the market, that is, the objective environment.Western economics believes that competition can be divided into four types according to the degree of competition: perfect competition, monopolistic competition, complete monopoly and oligopoly.

5.sensitivity to time

Merchants can formulate corresponding, effective and feasible price strategies according to market changes and consumer behavior in different seasons, different purchasing periods, and different economic and social environments.

(1) Seasonal price reduction strategy.For clothing with strong seasonality, take advantage of the opportunity of seasonal change to implement big discounts to attract consumers to buy.In foreign department stores, there are usually two seasonal sales every year, that is, winter and summer sales, and even manufacturers also use this opportunity to implement price reduction promotion strategies.

(2) Demand seasonal price difference strategy.According to the different demand levels and quantities of clothing in the four seasons of the year, seasonal price differences are implemented, that is, clothing prices are adjusted accordingly as the seasons change.Typically, winter clothing will be greatly reduced in price at the end of winter and the beginning of spring, otherwise the style may be eliminated after a year and does not meet the needs of consumers.

(3) Production season price difference strategy.The production of some clothing is affected by the clothing season, and the supply of clothing in different seasons fluctuates periodically, so the price should be based on the market supply and demand throughout the year.

(4) Phase pricing strategy.According to the different stages of the market life cycle of clothing, different levels of prices are set.Usually the range of price changes is consistent with the range of changes in the clothing market demand.For example, the skimming pricing strategy is often used for clothing pricing in the introduction period, the penetration pricing strategy is often used for clothing pricing in the growth period, the profit-sharing promotion strategy is often used for pricing in the mature period, and the price reduction or discount strategy is often used for pricing in the recession period.

(5) Market price strategy for new products.Usually when a new product is on the market, its price will be set relatively high in response to consumers' novelty, curiosity, and herd psychology.For example, when a new mobile phone is launched in each period, the price is very high, and only a few trendsetters buy it. With the large-scale promotion and popularity of this style, its price is continuously reduced to attract many followers to buy.

(6) Weekend Specials Strategy.In order to attract people who are resting on weekends to buy enthusiastically, many merchants use the strategy of weekend specials or weekend big bargains to attract customers who usually have no time to patronize.

(7) Daily specials strategy.For stores with more types and series of clothing, a daily special price strategy can also be implemented, that is, one style of clothing is sold at a special discount price every day from Monday to Sunday, so it can attract corresponding consumers to buy every day.

(8) Preferential price strategy for different time periods.In view of the fact that the purchase or consumption of some clothing is too concentrated in a certain period of time, a strategy of implementing different prices at different periods of time can be adopted.

How clothing is priced

The pricing methods of clothing prices mainly include:

1.Three Common Pricing Methods

When setting prices, the factors involved are more complicated, and there is no certain standard method.The most important thing is to conduct sufficient investigation and research, and conduct a test sale on the basis of analyzing the actual situation to determine the most appropriate price.Below are some common pricing methods.

(1) Cost-oriented pricing method.This is a pricing method based on the cost of clothing.It mainly includes the following specific methods:
① Cost-plus pricing method.Cost plus means that the price of clothing is set on the basis of the complete cost of the unit commodity plus a certain percentage of profit.The calculation formula is: Commodity selling price = complete cost per unit of commodity × (1 + cost plus rate)

To adopt this pricing method, it is necessary to understand that the markup rate is different at different times, different locations, and different market environments.Sometimes even in the same type of clothing store, the bonus rate may be different.The determination of the mark-up rate is the key to pricing.

The advantage of this pricing method is that it is easy to calculate, and under normal circumstances, this method can guarantee that the clothing store can obtain the expected profit.Therefore, in the case of a stable market environment, the cost-plus pricing method has been adopted by many clothing stores.

② Guaranteed point pricing method.The breakeven point is the profit and loss balance point, which refers to the operating time point when the input and output are balanced and the profit is zero.According to this method of pricing, finding out the profit and loss balance point of the store is the primary task.

Its calculation steps are:

Determine the unit variable cost, and use it as the basis for estimating the price of the product, and then add the apportionment of the fixed cost to calculate the sales volume necessary to reach the break-even point.

Sales volume at breakeven = fixed cost / (unit commodity price - unit variable cost)

Achieving its sales volume at this price level shows that the store has just broken even, and this price is actually a breakeven price.

Guaranteed price = fixed cost / breakeven sales volume + variable cost per unit of goods

Adding the expected profit on the basis of the guaranteed price, the selling price of the commodity can be obtained.

Product selling price = (fixed cost + total expected profit) / sales quantity + unit variable cost
③ retail pricing method.Stores sell a wide variety of products, and prices change frequently. Before changing prices, one should consider whether profits can still be maintained after price changes.In this case, a simple cost-plus formula can be used for calculation:
P=C+M and because Mk=kP
Therefore: P=C/(1-k)

In the formula: k—the percentage of retail price addition; C—unit cost; M—the absolute value of the addition

④Marginal cost method.The purpose of using the marginal cost method is to strive to rapidly increase market share, or use idle equipment, or eliminate slow-moving clothing, or seek capital turnover.Under this price concept, as long as the increased sales revenue is sufficient to recover the unit variable cost, the goal is achieved.

(2) Demand-oriented pricing method.Cost-oriented pricing is an inward-looking pricing method that does not consider market demand.The demand-based pricing method (also known as the demand-oriented pricing method), which considers the intensity of demand, rather than the cost level, is an outward-looking pricing method.When the market demand is strong, the price is high; when the demand is weak, the price is low.Differential price, also known as price discrimination, is a common demand-oriented pricing method.Under this pricing method, a commodity is sold at two or more different prices, and the difference in price does not reflect the difference in cost.Differential prices vary according to different benchmarks, the most common are the four benchmarks of customer, commodity, time and place.

①Differential prices based on customers.We account for customer-based price differences in terms of the selling price of the car.During the same period, some people bought the car at the price announced by the marketer, and some people bought it at a price lower than the advertised price, but the two cars are exactly the same, and their transaction costs are also exactly the same.The reason for the difference in price between the two is that the strength of the customer's "demand" is different.

②Differential prices based on the product.Under normal circumstances, the prices of products with the same quality and specifications but outdated colors or styles can be set lower, while those with new colors or styles can be set higher;

③ Differential prices based on time.Stores often use holidays, store celebrations, etc. to set a certain range of discounts for some or all commodities within a certain period of time.With the continuous development of my country's economy, consumers in the fast-paced life of weekdays are gradually keen on shopping and leisure without restraint during holidays.The time-based discount pricing of the store captures this point, so it can often have a good promotional effect.

④Differential prices based on location.Location often plays an important role, so different prices can be set according to different locations.For example, seats in movie theaters and concerts are priced differently depending on the location, even though all seats cost roughly the same to build.Similarly, the price of goods sold in clothing stores will also be affected by their geographical location to a large extent.The price in the bustling commercial area will be higher, and vice versa.

Although the benchmarks for differential prices are different, the following conditions must be met in order to be practical:
Price differences must comply with the provisions of the relevant laws.

Markets can be segmented, and each segment has a different intensity of demand.

Competitors have not resorted to low-price dumping strategies in high-priced segments.

The execution costs of segmenting the market will not outweigh the benefits.

(3) Competition-oriented pricing method
The maximum price of a commodity depends on the market demand for the product, and the minimum price depends on the cost of the commodity.Between these two prices, how high the store's goods are priced depends on competitive factors.All pricing methods that take competitive factors as the main basis for pricing are competition-oriented pricing methods.Competition-oriented pricing is most prominent in market-based pricing.

The advantages of the market-based pricing method are firstly reflected in the simplification of the pricing procedures for some commodities whose cost and demand are difficult to estimate, and the possibility of obtaining moderate profits; secondly, it reduces price wars among peers, and there is more coordination among stores, so that each The store has increased the sense of security.Now many clothing stores, especially small and medium clothing stores, are willing to adopt this method.

2.four techniques

(1) Safe pricing method.Clothing pricing is a difficult problem, because if the price is set too high, it may not be conducive to sales, resulting in a situation where no one cares about it; if the price is set too low, losses may occur.Therefore, the safest and most reliable thing is to set the price of clothing at a relatively moderate level, and the market risk is relatively small, which can not only recover the investment within a certain period of time, and have appropriate profits, but also enable consumers to have the ability to buy, and the store is also convenient. sell.Therefore, this strategy is also called "satisfactory price strategy".

Security pricing usually consists of costs plus normal margins.For example, the cost of a pair of jeans is 80 yuan. According to the general profit level of the clothing industry, the average profit of each pair of jeans is 20 yuan. Then, the safe price of this pair of jeans is 100 yuan.Safe pricing, affordable.

It can be seen from this that the truly safe pricing method is backed by the perfect operation and considerate service of the clothing store. Only such a pricing method is truly satisfactory.

(2) Uniform pricing method.In recent years, in some big cities in my country, 10 yuan stores, 5 yuan stores and even 1 yuan stores have sprung up one after another, and the scene is extremely hot.This also illustrates one point: the unified price has a wide market.Because there is only one unified price for all products, it can give customers a sufficient choice and psychological satisfaction.

There is a clothing store, which is aimed at the blue-collar workers who account for the largest proportion of the population. It specializes in the odd single-piece garments produced by large garment factories due to excess production and unsuitable specifications. , has great appeal to middle and lower income families.General clothing stores are unwilling or disdainful to operate these odd pieces of clothing. At this level, there are not many competitors of this clothing store, so a rare business opportunity has been seized.

The purchase price of these odd pieces of clothing is very low, and their target customers are very price sensitive.The unified pricing method fully captures the customer's pursuit of equality, which is more conducive to the sale of goods.

（3）弧形数字定价法。据国外市场调查发现，在生意兴隆的服装店、超级市场中，商品定价时所有的数字按其使用的频率排序，先后依次是5、8、0、3、6、9、2、4、7、1。这不是偶然出现的现象，是和顾客的消费心理有渊源的。从顾客的消费心理来讲，带有弧形线条的数字，如5、8、0、3、6等对顾客没有刺激性，容易为顾客所接受；而不带弧形线条的数字，如l、7、4等比较而言就不受欢迎。所以在服装店、超级市场商品销售价格中，8、5等数字最常出现，而1、4、7则很少出现。

When running a clothing store, we should make full use of customers' consumption psychology, try to use arc-shaped numbers consciously when pricing, and try to avoid using numbers such as 1, 4, and 7 as much as possible.For example, a piece of clothing with a price tag of 1000 yuan may make customers feel expensive; if the price tag is 997, there is a sense of price reduction, but the number 7 feels uncomfortable; if it is changed to 990 or 980 yuan, it will feel cheap and comfortable. Stimulate customers to have a desire to buy.

In the digital application of prices, it should also be combined with my country's national conditions.For example, in Cantonese, "8" and "fa" are homophonic, so I especially like the number "8", thinking that it will bring me good luck to make a fortune.Therefore, when pricing, it must conform to some specific customs and also conform to the purchasing psychology of customers.In this way, the business will become smoother and smoother.

(4) Nine-nine mantissa pricing method.The mantissa of clothing sales price is 99, which is a pricing method adopted by western retailers according to customers' consumption psychology.For customers, the nine-nine mantissa method can produce the following two feelings: one is that the clothing store's approved sales price is serious and accurate, and even if it is a little bit worse, it will not be rounded up; the other is that the clothing is "cheaper".For example, 99 yuan is worth tens of yuan, and 100 yuan is worth hundreds of yuan of clothing.The use of 99 mantissa can prompt customers to have the desire to shop.

Therefore, when merchants set prices now, they basically end with "9", and the price usually starts with "29", which brings an illusion to customers. Take "29" as an example, customers will think that it is more than 20 yuan Money things are very cheap, and they are more acceptable psychologically.

However, when using the nine-nine mantissa method in clothing sales, pay attention to:
(End of this chapter)