The top priority for most retailers is to deliver sales. This can be measured in total sales dollars, percentage increase over previous year compared to budget, or some other means. Regardless of how you want to quantify it, sales are a top priority. You should be thinking about sales in your business and looking for opportunities to grow sales for you and your customers.
1. Package size. In the entire food and beverage industry, we see a lot of changes to package size. With increased cost of inputs and labour, the reality is that it costs more to produce the products. Consumer packaged goods companies are always trying to find the right size that will drive volume and deliver the right rate of return. In produce we need to think about this more often. We have been using the same package size on some items for a long time.
Given the challenges of operating in today’s environment we should question the sizes. The shift to a smaller package size can be advantageous because the retail might go down and be more enticing to people or work well with a multi buy retail (2 for $5.00). Another consideration is to increase the package size and sell more to the existing consumer. In this example, the current price might be 375g package for $2.99. A new 454g package for $3.99 might be attractive to just as many consumers and you will realize a 20 per cent sales increase.
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