How Can I Use Matrix Pricing To Help Me Make More Profits
There is a trick to being successful and making sure that your retail margins are high enough to cover your “nut” (the cost of opening your doors) while leaving enough on the bottom line to reward you for your investment and for your efforts to build your business.
That trick is called MATRIX PRICING. Matrix pricing divides up products into categories based on their level of demand, the gross margin that is possible to get based on the first factor (together with competition) and the percentage of the total business that particular product has compared with all the others in the retail store.
Who uses Matrix Pricing? Just about every grocery store chain, most retail & franchise chains, the big-box stores (WalMart, Target, Lowes, Home Depot, hardware store chains (franchise, coops and independent chains), etc. The list goes on and on. Many people who work in these stores are not aware of how pricing is done.
Valeska Toledo is the Principal and creative director at Savvy Concepts Advertising. A multicultural advertising and marketing agency focused on helping to bridge the communication gap, targeting primarily the Portuguese Speakers – the second most spoken language in the state of Massachusetts. Toledo has a strong art director background and experience working with the Latin American communities for the past 12 years. She's also fluent in three of the four Romance languages: Portuguese, Spanish and Italian.