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Staying Competitive, Not Lowest, on Price

Before they felt the pressure of the economic downturn in 2008, consumers considered the convenience of a store’s location as more important than price–but the recession changed that.

Price became the top factor in choosing a store, and consumers placed a higher priority on finding the lowest prices rather than accepting competitive prices.

In 2015, with the economy improving and consumer confidence high, consumers returned to more of a pre-recession spending mindset.

Finding the lowest price dropped in importance, as shown in the data below. The numbers come from The Farnsworth Group, a firm that provides research and retailing expertise to retailers and other channel partners.

Pricing Graphic

Applied to Retail: In this ever-changing retail environment, you must constantly evaluate your prices compared to other retailers in your market and ensure that you have a pricing strategy that keeps you competitive. But you don’t necessarily need to fight to have the very lowest prices.

Learn more about pricing strategies and today’s retail environment from experts, as well as other retailers.

About Sara Logel

As NRHA’s market research analyst, Sara conducts organic research and stays abreast of industry trends to help hardware retailers better run their business. Sara also contributes to editorial content in Hardware Retailing magazine. Sara received her B.S. in Marketing and Spanish from Butler University and, after graduation, began her career with NRHA. Sara enjoys traveling, being outdoors and exploring the city of Indianapolis.

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