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.
Craig holds an MBA from the University of California (Berkeley) and has been awarded the coveted CMC Certificate by the Institute of Management Consultants - Washington, DC. Stimmel's clients include AMOCO Oil, Staples, John Heath & Co Ltd (UK), Beautone (Taiwan), Hunt Mfg, Avery-Dennison, Steelcase, The Hon Company and many others. Craig is a nationally published author of articles covering both distribution and service business development issues as well as being a featured speaker at trade events and conventions.