Why You Should Avoid the Price-Matching Trap in Retail | Retail Today With Bob Phibbs, the Retail Doctor - Flash Briefing

Price matching is not just Amazon anymore. It's going to be Walmart. So at that point, you have to ask yourself, "Okay. So how much time am I going to devote to someone who wants to buy this game, whatever it is, and... Oh, we'll go on. We'll make sure. Well, show us in your phone. Okay. We'll go verify it on our computer, and the item is 40 bucks." I mean, seriously, how much could you be off by? 10 bucks? 5 bucks? In addition to that, are you then stopping everything and doing this for multiple customers?

More importantly, you're letting a competitor dictate your profitability. When somebody asks that... Well, yeah. If you've got a $200 or $300 item, and maybe it's something that is new to the market, and it's also on Amazon or they have their own website, and maybe you mark it up for an extra 20 bucks, maybe that's worth it to you. How much work do you want to do at cutting your prices versus you say, "You know, it's like a grocery store. We're going to have some things be more expensive than others. We're going to be lower than other people in others. As a whole, we're competitive with all of them. Would you like a box or a bag for this, or would you like free gift wrapping?" or whatever it's going to be. You know?

If you love what you heard on Retail Today, connect with Bob by visiting retaildoc.com or send a message to bob@retaildoc.com. Thanks for listening.

If you love what you heard on Retail Today, connect with Bob by visiting retaildoc.com or send a message to bob@retaildoc.com. Thanks for listening!

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