Deal or no deal: what will price-comparison do to wholesale?

The title of this blog is taken from this month’s Better Wholesaling magazine (link below) and the question really is what impact Improve That Price will have on the wholesale/retail industry or if your products are well priced why not be compared?

In the article there are wholesalers commenting about having different prices for different customers especially customers who buy in volume. It seems that some suppliers fear that Improve That Price might damage their business model of keeping the ‘special prices’ for their ‘special customers’. Bellow are three comments by wholesalers taken from the article:

  1. IT COULD ENCOURAGE CUSTOMERS TO CHERRY-PICK: Customers could be tempted to buy the cheapest product at the cheapest time, which Landmark suggests could impact margin.
  2. SAVVY RETAILERS AND FOODSERVICE OPERATORS ALREADY KNOW THEIR STUFF: Customers don’t have much time to spend on price-comparison sites, when many know the market anyway.
  3. CUSTOMERS WANT TO COMPARE MORE THAN JUST PRICE: Retailers, caterers and foodservice outlets want to compare other areas of service, such as availability and deliveries.

When Improve That Price was created it was with the SME’s in mind and if a business can ‘cherry pick’ to stay profitable then this is the right way forward. When I ran my small business, part of the regular tasks was to improve the bottom line, which one would always make time for, and when attempting to do this there are usually two options:

  1. Increase prices.
  2. Improve your COS.

When a business increases its prices usually it tends to loose a number of customers and therefore the ideal option would be to improve the cost of sales as the profit is in the buying.

It is important that a supplier has good stock availability and that deliveries are regular and on time but should any of these basic requirements be unsatisfactory then users have the ability on Improve That Price to leave feedback for the supplier in order to inform their colleagues and keep the suppliers on their toes.

Improve That Price’s aim has always been to provide the most up-to-date information as possible for the 99% of businesses that do not poses the ability to purchase in bulk or buy in volume but are limited to buying the products they need as price marked. It is in the interest of these SME’s to compare suppliers as they make up the bulk of the sales for many wholesalers.

Keep comparing, keep saving and don’t keep calm!

http://www.betterwholesaling.com/magazine/september-2013/deal-or-no-deal-what-will-price-comparison-do-to-wholesale/