BHTS Sales Strategy and Pricing Model
You’ve probably walked around one of our stores and seen all of the different colored tags and asked yourself “what do these colors mean?” Well wonder no more, each of these colors signifies a different discount amount.
The color we are producing that week and red tags are typically the only items at full price, from there, items are discounted at rates of 25%, 50%, and 75%. What this means is that while pricing items, we have to take into account what an item will eventually hit on its discounts and find a price point that will be most likely to sell while it is at full price. Using our pricing tiers when it comes to general merchandise is the easiest way to accomplish this.
Another thing to keep in mind is when the discounts change. Our discounts take effect every Sunday. This means if I’m pricing an item on say Friday, I should take into account that in 2 days the item will hit a discount and the price of the item a little bit higher than I normally would. A dresser that would normally be priced at $100 maybe priced at $125.
As previously stated, typically we will price items anywhere from 25%-30% below retail. This means we will research an item online and base our prices off of that. If a used printer comes in, we can confirm it works, and all the pieces are there, we see that it sells for $75.00 online we will typically price the printer around $50.00. We hope that it sells at this price point but if it does not, in one week it will hit a 25% discount, if it does not sell at 25% off, it will hit the 50% discount a week later and eventually a 75% discount a week after that.