Volume 2:831
Hi everyone.... Our warm summers' end and the end of planning for day trips or sitting by the calm , peaceful water at the cottage is imminent. We're reminded of how our daily routines are governed by clocks and demands with the flooding of advertisements for back to school sales.
Our children make long lists of must haves with excitement as we dread yet another unwelcome expense. After all, we would love to give them the "easy" Staples button and an empty shopping cart but unfortunately, for many of us, the reality is, we must remain mindful of the final cost at the check out.
Retailers use this opportunity to capitalize on maximizing their otherwise sluggish summer sales. Time and money is spent on marketing and sales analysis to best determine how to encourage the consumer to buy. Walmart stores are a great example of this sales technique. The consumer shops with confidence at their stores believing that they are getting the lowest price and value for their loyalty. Have you ever had the feeling that their individual prices are great for your budget, until you get to the cashier ?
We, as consumers, are becoming frustrated with consistent increases in pricing. The value in the products offered however do not seem to reflect the higher costs. It has become apparent that the consumers' position is that in understanding the current economic situation, retailers should be decreasing their costs to help offset the impact of decreasing household incomes. The retailers view however, is that in order to maximize sales, they will deliberately lower the costs on targeted items to encourage multiple sales.
Retailers cannot lower their overall pricing in part because of three main components. They have set expenses that must be considered. Their contracts with manufacturers they purchase from also have set pricing, and finally, the consumer would come to expect the reduced price as the only acceptable price that they would pay.
The
Gift Basket retail sales sector operates on basically the same principles. Smaller companies that don't have the capital to conduct marketing strategies rely on larger companies' trends and pricing. Most of their marketing research may be based on viewing product selections currently offered by their competitors. Since most of the products available for use within gift baskets are common to suppliers, this may cause a repetitive selection that offers the consumer a duplicated look.
The costs associated with purchasing products from suppliers increase on an annual basis, even though the product itself has not changed. This forces gift basket retailers to increase the cost of each individual product that is offered within the basket. Unfortunately, the consumer will incur the final cost adjustments. Retailers can comply with the consumers request for lower prices. They can reduce their profit margins, which can affect the solvency of their business. They can also adjust their product selections and offer a more reasonably priced alternative. In many cases, this can alter the value of the product.
Our commitment to our customers is to continue to offer the best selections available at varying prices that best represent their individual needs.
Until next time...... Have a great day !!
Lisa
Labels: consumers and retailers, gift basket canada, gift baskets, innovative gift baskets
