Critical success factors of pricing tools adoption from Famous Footwear and Giant Eagle…

(PRLEAP.COM) October, USA August 31, 2007 – In a turbulent environment of increased competition across all channels and the need to improve bottom line it’s no surprise that pricing technologies have become more wide spread within the retail industry. Leading retailers in the field are seeing the positive impact on their final profits figures but what are the secrets to retail pricing success?

Mike Friedenreich, Director of Planning for Famous Footwear believes that despite the increasing complexity of business and market sensitivity the benefits that can be seen from investing in pricing tools can still come into fruition if strategy and disciples around inventory management are set in stone; “Certainly [one of the] hard benefits in this complex environment can be improved profitability. This cannot be achieved, however, without having a strategic intent around freshness and velocity along disciplines in inventory management”

Friedenreich continues, “Soft benefits include operational consistency and time reinvestment in other activities”

Derek Hansen, Business Project Manager for Giant Eagle and speaker at the 4th annual Retail Pricing Summit [www.eyeforretail.com/pricing07] agrees with Friedenreich on the importance of strategy but believes that people are as in important too; “If you don’t have a pricing strategy the tool won’t be able to help you. Also if your staff isn’t familiar with your business or what you are trying to accomplish then the pricing tool will just be a waste of time.”

Friedenreich adds; “a strategic intent or vision for a companies brand should come first [when considering investing in a pricing tool]. Another major influence is senior level sponsorship and a willingness to break pricing paradigm. If these conditions are not in place first, adding a pricing tool to a companies existing environment will have limited success”

Friedenich places a lot emphasise on data, people and patience; “the one thing that is crucial with price optimization tools is your data. You need to make sure that you get your data as clean as possible and that you have the staff on-hand that understand it. He continues; “It is also important not to try and rush through getting categories loaded into the tool just so that you can try to speed up ROI time. If you take your time and get everything set up correctly the first time, the tool is going to work out really well for you”

Hansen concludes “Price optimization tools must integrate with sound/consistent business processes and Brand/Merchandise vision and financial objectives. [Maximum ROI can also be achieved through] senior level sponsorship, cultural acceptance, matching pricing tool parameters to planning intent and [by] having specific measurable and attainable implementation goals.

Hansen and Friedenich are just two of the market leading retailers confirmed to speak at the 4th annual Retail Pricing Summit, in Orlando, October 3-4. The meeting is a purely retail focused event that will zone into every element of a profitable pricing strategy. Full information is available at [www.eyeforretail.com/pricing07]

EyeforRetail is a UK based publisher, event origination and marketing company. Operating internationally in multiple vertical industries the company is known for its high level summits and industry news services.

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Tinu Ademosu
EyeforRetail
tinu@eyeforretail.com
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