Independent retailers have given price-marked packs a thumbs up even though many realise this mechanism hits their margins.
In The Grocer’s exclusive reader panel survey, 80% of those quizzed thought price-marked packs were a good idea, and for well over half it was the favourite promotional tool used by C&Cs.
Last week, The Grocer reported that Kraft was facing the independents’ wrath for introducing price-marked packs at significantly higher prices to the independents than to the multiples (‘Mind the Gap’,The Grocer, April 9, pp 36-37).
But during our survey, one Shropshire-based retailer said anything that helped gain the trust of customers and therefore sell more product was good. “Price-marked packs give the impression we are selling products at similar prices to the big supermarkets and so they are willing to buy more,” she said.
Trust was another word used extensively. “Shoppers trust the prices on price-marked packs, as they don’t think we are ripping them off by charging over the odds,” said a Nottingham-based owner. “I always go for price-marked packs where they are available, but I do get annoyed by the reduced profit margins.”
Many felt price-marked packs were easier to sell and led to increased sales.
Not every shopkeeper is in favour of price-marking, however. Some 20% said they didn’t want to be dictated to on price. “I never buy price-marked packs as I want to make more money,” said a retailer in the North East.
Nearly 80% of shop owners quizzed said they had to travel to at least two or three C&Cs; most looked for cheap prices and deals, with fewer than 20% affected by service and location.
Gail Hunt