Better pricing... the key to local shopping

By Ian Ferguson

MANY Bahamians travel to the United States for a vacation experience during the summer months. Most of these Bahamians travel with one purpose in mind: Shopping.

It was the late Dr Cleveland Eneas who declared that Bahamians were born with the unalienable right to travel to Miami; in fact The Bahamas and South Florida has such a rich historic past that most persons simply accept that we are inseparable. If you ask the common Bahamian why they choose to shop in Miami, New York, Orlando, Ft Lauderdale or wherever Bahamians are shopping these days, the common response would simply be…the prices!

While I believe that much of our exercising our right to travel and shop is connected to the tremendous bargains to be found in America, for so many Bahamians our craze for American shopping is psychological. The Chamber Voice resoundingly says again that we encourage Bahamians to shop locally and to ensure that the earnings that we secure from tourists visiting the Bahamas remain in the country for our future development. A local business leader declared recently in my hearing that Miami is nothing more than a large wholesale and retail distribution centre. Little to no manufacturing takes place in Miami or South Florida (assembly of finished goods at best). What they have done successfully for years in travelling to the manufacturers in Hong Kong, China Taiwan, Haiti and everywhere else, we can do quite easily. Our focus then is towards assisting local companies address one of the consumers’ greatest complaints: The PRICE of goods and services in The Bahamas.

Price is the quantity of payment or compensation given by one party to another in exchange for goods and services. The pricing strategy of your business can ultimately determine your fate. Business owners can ensure profitability and longevity by paying close attention to their pricing strategy. Research also bears out that in difficult economic times when sales are hard to find, adopting a better pricing strategy is the key to remaining viable. Merely raising prices is not the answer as many companies have priced themselves out of business. By the same token some companies under price goods and services and miss the opportunity to get full value for their products and services

We rest by stating that one pricing strategy does not fit all. It is important to study the behaviour of customers, competitors, the market place, the economy and price accordingly. Here are a few tips that will assist you whatever pricing strategy you decide to use:

• Conduct a competitor analysis: Do not just look at the price of the competition’s goods or services, but the entire value of what they are offering, including service levels; value added goods and services, etc.

• Know your pricing limits: (ie. The bands in which consumers are prepared to purchase your goods and services). Some goods stay on shelves for long periods of time because we have priced ourselves out of the market

• Enhance exclusivity: Products or services that are exclusive to your business provide protection from falling prices and are quite attractive to your potential customers.

• Drop high maintenance goods: There may be products or services in your business that have high customer service and maintenance costs. Drop the unprofitable lines and find out what customers don’t want.s

• Strengthen the Brand: Develop your brand name in the market. Brand name businesses can always stand strong in a price war.

NB: Ian R. Ferguson was educated locally, regionally and internationally, having earned a Master’s Degree in Education from the University of Miami. During the course of his nearly 20 years in education, talent man- agement and human resources, he has served both the public and private sector in senior manage- ment roles. He currently serves as manager of the Chamber Institute, and as a local consult- ant in the field, having assisted hundreds of local and regional businesses in improving business and service excellence through their human capital.

Comments

sansoucireader says...

How about 'selection' and 'choice'? If you don't like what the stores here are selling you're out of luck!

Posted 21 August 2012, 7:30 p.m. Suggest removal

Puzzled says...

I agree with sansoucireader, many Bahamians would be prepared to buy locally if the selection and choice were available. It has to be preferable to being 'allowed' to visit the States by US security. However the market here is small and for high end products it is tiny so the vendors do not have the luxury of quantity buying and due to the limited market do not always get the right product here, then once they get stuck with a slow seller the do not understand the principle of deep discounts to turn over the stock.

Posted 23 August 2012, 9:52 a.m. Suggest removal

ianrossferguson says...

Agreed...We are challenged with the smaller economies of scale in providing variety suffficient to meet the demads of the highly exposed Bahamian populous. It is a catch 22 situation. When people shop home more, businesses will have the confidence and resources to expand their businesses. The conversation continues...

Posted 28 August 2012, 8:48 a.m. Suggest removal

zinos85 says...

When you get good deals and offers while shopping it becomes a more enjoyable activity. Now online shopping has also become a popular concept and online shopping too comes with great deals and packages. On the online shopping outlets you would find the announcement of deals and discounts. If you need beautiful bouquets in Atlanta you could opt for <a href="http://www.hallsflowershop.com/flowers/">Christmas Flowers in Atlanta</a> online.

Posted 18 January 2013, 5:10 a.m. Suggest removal

zinos85 says...

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Posted 31 January 2013, 6:44 a.m. Suggest removal

dudu says...

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Posted 5 February 2013, 3:28 p.m. Suggest removal

isabella says...

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Posted 10 September 2013, 8:45 a.m. Suggest removal

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