PERSPECTIVES

From The Co-Founders

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Tips, Tactics & Strategic Insights and Commentary
from The ROI Co-Founders, Pat Johnson and Dick Outcalt
Outcalt & Johnson: Retail Strategists LLC; Retail Turnaround Experts

Does Your Pricing Show Respect?

For retailers, pricing is never an easy task. Finding the sweet spot between growing sales and maintaining margins – while astutely managing turns and cash flow – is not a no brainer. 

Then there is today's environment. Consider these recent headlines:

  • Tariffs have changed summer and holiday shopping in the US.
    Almost 40% of surveyed consumers spent less on Amazon Prime Day than in years past. 

    — Retail Brew, July 24, 2025. 

  • After Pledging to Keep Prices Low, Amazon Hiked Them on Hundreds of Essentials. 
    Analysis found increases on 1,200 low-cost goods, while competitors such as Walmart made them cheaper
    Wall Street Journal, July 20, 2025. 

So, shoppers are trying to spend less. But prices are creeping up, no matter what. 

The big problem, of course, is how the shoppers are dealing with all this. More uncertainty is NOT what they want or need. 

That's why we get particularly concerned when we see stickers such as the one below on items in local grocery stores:

"Buy Two Get One FREE!"

What the fine print reveals – often only at checkout, to the chagrin of employees – is that it is only the THIRD one that is free. This is not a BOGO offer. 

Feels a little like a ripoff, doesn't it? A technicality. 

Sigh. Should being a shopper require eternal vigilance?

 

 

 

"All I wanted was a beer. And now I have to do math??"

Which would you buy? 🧐  

  • The 18 pack of 16 ounce cans for $14.99? 

  • Or the 24 pack of 12 ounce cans for $22.69?

This photo of an in-store display was accompanied by the lament: "All I wanted was a beer. And now I have to do math??"

True; high school math teachers applauded this as a great example of needing math in real life. But is confounding the customer really a good approach?

 

Here's the opportunity for retailers. And it’s especially warranted in today’s environment. Make it more obvious that you are trying to team up with them. 

Customers are not your adversary. You’re not trying to take advantage of them. 

Make it more clear that your goal is to find the best products at the best price for your best customers. Not to fleece them. Show them some respect!

In today's environment, you need as many loyal, respected customers as you can serve. Don’t you agree?



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