December 19, 2022

Share of Items Sold Below Average Historical Price Point

Let's look at the data by merchandise class.

This brand just quit discounting, didn't they? That's how they are dealing with price increases. Let's compare 2022 to 2021 by merchandise class.

  • 33.5% of old items were discounted last year, 20.3% this year.
  • 48.4% of 3yrs ago items were discounted last year, 28.8% this year.
  • 48.4% of 2yrs ago items were discounted last year, 30.2% this year.
  • 38.4% of 1yr ago items were discounted last year, 36.4% this year (not as big a change).
You can either raise prices, or you can discount less, in an effort to increase gross margin percentages. Of course, either strategy results in lower response. It's a huge game of wack-a-mole, one that is terribly hard to win at.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Summer Schedule / Document Your Progress This Summer, Ok?

Most summers, I cut back on how often I publish. This summer will be no different ... and you may be subjected to a few videos instead of bl...