May 2024 - 19

MANAGEMENT
REVAMP YOUR RETAIL SERIES:
pricing products
W
hile pricing can be a game of
chess, you can learn how to
move the pieces and develop
enough skill to win a few rounds. Here
are some key considerations when
pricing products in your IGC.
Cost
Do you have a good idea of your real
costs by keeping track of all product
and service costs, including labor and
overhead? How much detail do you
have for each item? When a product
is purchased as a finished product and
is ready to sell, tracking costs is easier
than if a retailer is growing products.
In both cases, it takes a commitment
to track costs, then making the
decision to track costs in as much
detail as possible and making the
investment of time.
No one person has the perfect
system for tracking costs; one of
the hardest parts is getting started.
Choose three or five key products
to begin with. If 6-inch annuals or
24-inch baskets are key products for
you, that's where you should start
calculating costs. If you are growing
your own products, be sure to include
labor, as that is likely the greatest
contributor to cost.
Revisit those costs at least twice
each year, working to put more detail
into them. Still, some retailers stop
at calculating and only use a formula,
sticking to that for a markup -
and are missing the other pricing
considerations!
Perceived Value
Another consideration retailers
should use to set prices is the
perceived value of the product to
the customer. Consider the five
dimensions of value): functional,
conditional, social, epistemic and
emotional value. Functional value
By Bridget K. Behe, Ph.D.
The third in a five-part series, this article shares research findings that can help garden
retailers fine-tune their pricing strategies.
Carlsons' Greenhouse in Fenton,
Michigan, has great signs
showing benefits not features.
Descriptions of the color and
flavor are much more appetizing
than how tall the plant grows
or how far apart to space them.
Photos courtesy of Bridget Behe.
LGRMAG.COM | 19

http://www.LGRMAG.COM

May 2024

Table of Contents for the Digital Edition of May 2024

Editor's Letter
Table of Contents
Headlines/Calendar
Innovative Ideas: Can We Talk?
Green Goods: From Soil to Centerpiece: Home Cutting Gardens
Showcase: Garden Accents & Décor
Management: Revamp Your Retail Series: Pricing Products
Showcase: Birding & Wildlife
Management: Your Revenue Product Mix Matters
Showcase: Kid-Friendly
Marketplace
Ad Index
5 Minutes With ... : Karli Heineman
May 2024 - 1A
May 2024 - 1B
May 2024 - 1C
May 2024 - 1D
May 2024 - 1
May 2024 - 2
May 2024 - 3
May 2024 - Editor's Letter
May 2024 - 5
May 2024 - Table of Contents
May 2024 - 7
May 2024 - Headlines/Calendar
May 2024 - 9
May 2024 - Innovative Ideas: Can We Talk?
May 2024 - 11
May 2024 - Green Goods: From Soil to Centerpiece: Home Cutting Gardens
May 2024 - 13
May 2024 - 14
May 2024 - 15
May 2024 - 16
May 2024 - 17
May 2024 - Showcase: Garden Accents & Décor
May 2024 - Management: Revamp Your Retail Series: Pricing Products
May 2024 - 20
May 2024 - 21
May 2024 - 22
May 2024 - 23
May 2024 - Showcase: Birding & Wildlife
May 2024 - 25
May 2024 - Management: Your Revenue Product Mix Matters
May 2024 - 27
May 2024 - Showcase: Kid-Friendly
May 2024 - 29
May 2024 - Marketplace
May 2024 - 31
May 2024 - 32
May 2024 - Ad Index
May 2024 - 5 Minutes With ... : Karli Heineman
May 2024 - 35
May 2024 - 36
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https://www.nxtbook.com/greatamericanmediaservices/LGR/january-2022
https://www.nxtbook.com/greatamericanmediaservices/LGR/thriveguide-2022
https://www.nxtbook.com/greatamericanmediaservices/LGR/november-december-2021
https://www.nxtbook.com/greatamericanmediaservices/LGR/september-october-2021
https://www.nxtbook.com/greatamericanmediaservices/LGR/august-2021
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https://www.nxtbook.com/greatamericanmediaservices/LGR/february-2021
https://www.nxtbook.com/greatamericanmediaservices/LGR/january-2021
https://www.nxtbook.com/greatamericanmediaservices/LGR/thriveguide-2021
https://www.nxtbook.com/greatamericanmediaservices/LGR/november-december-2020
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