When running a retail business, a very frustrating aspect is setting the perfect prices and selling by them. As an independent pharmacy, it is possible that some of your competitors are selling the same products or similar ones at lower prices and you are losing some customers to them, you may feel the need to lower your rates or drop your prices in order to make headway; don’t do it.
Business veterans describe competing on price as a game for suckers that leaves you vulnerable and at the mercy of your competitors. There’s a greater chance of success if you choose to compete on value rather than price.
Explained below are some techniques you can use to better compete on value rather than take the chicken’s way out by lowering your prices and compromising your business.
- Don’t change your pricing, change your customers: As an independent pharmacist, you can’t have a good business if you don’t have some loyal customers who give you referrals and repeat purchases. You need to first put your target audience into consideration, Are they overly price-conscious? If yes, you may need to change your customers for 2 reasons.
This is not being judgmental but the first reason is that customers that care only about lowest prices or promos don’t really have cash to spend on purchases with you. It would not be great for your business if your customers don’t have any cash to spend on your products. Lowering prices may help you with a little more sales but it’d be from people who have a very low lifetime value to your pharmacy.
The second reason is that customers that are price-focused are not loyal to any particular service, store or brand, only to the lowest rate and price. If you try to eliminate competition by cutting prices, you may get many price-focused customers. What if a competitor drops prices a little lower, you’ll rake in loss on sales as well as losing your customer base.
- Build good customer relationships: A good way to do this is through offering preview sales and promo deals. You can also build a lasting relationship with your customers by following up on large purchases as well as asking for feedback. Another way to connect with your customers is by making the refund policies on certain products fair and clear.
Also, answer complaints and other questions professionally and quickly. You could also enhance the experience of your customers by telling your sales team to help them package items beautifully or add a little bonus item. This will make your buyers feel really special.
- Stay ahead of the curve: As an independent pharmacist, this involves offering your customers’ new products, ideas, or how to use existing products and services. A good way to do this is through video summaries.