November 13, 2022

Pricing Evolution

This is from the pre-COVID era ... the before times ... I'm analyzing a brand that, over time, was becoming healthy. Look at the percentage of sales sold at/above historical average price points by year by pricing band (0 = lowest prices, 9 = highest prices).

When the company discounts, where does the company discount? With the lowest price points. The brand maintains price integrity on the most expensive items.

Compare 2019 to 2015. Tell me what you see?

Yeah, in 2015 this was a sick brand, selling half of merchandise at a discounted price. In 2019? Much healthier.

If you are a consultant like me, it's pretty easy to see when a brand is healthy or unhealthy, based on the prices that items are selling at over time. I realize that in 2022 many of you were forced to increase prices AND your business became unhealthy in the process ... that's a different issue than the one we're analyzing above.

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