Question

Topic: Strategy

Retail Price, Nett Price, Or Unpriced Catalog?

Posted by Anonymous on 7/2/2012 at 8:38 AM ET 250 Points
Greetings,

We are an 'Office Supplies' company, reselling stationery products primarily B2B. Product catalogs are supplied to us by wholesalers, using our own cover artwork, containing details of the 20,000+ products which we resell.

We have only 2 choices of pricing strategy in these pre-printed catalogs:
a) Goods are priced at manufacturers 'Recommended Retail Price', or ...
b) Good are Unpriced - 'Price on Application'.

The dilemma we face is as follows:
The manufacturer's standard retail prices are set extremely high - in many cases double the 'street' price, or higher still. In our cover-art for these catalogs we highlight that 'discounts up to 50%' are available on these prices' (we sell, more or less, at competitive 'street', or 'Nett' prices). Nevertheless, it seems almost insane to produce marketing and sales literature which details unrealistic high prices, and this is a sure customer disincentive.

The alternative of not showing prices at all in our catalog, is not ideal either - a clear barrier to gaining new business. It looks like we are hiding something!

So... these are my choices. Illustrate an unrealistic high price, or show no prices at all in my product catalog. Not great choices - but which is the 'least worst' option do you think? Any and all opinions welcome, with thanks.

Chris.
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RESPONSES

  • Posted by mgoodman on 7/2/2012 at 11:32 AM Accepted
    Ah, those old dead-trees catalogs. They have a certain appeal to the paper mills, don't they?

    What if you just went digital, and trashed the printed catalogs. Take the money you'd spend on them and mount a terrific campaign to drive potential customers to your website, where they can get the REAL prices right away.

    Whenever you're faced with the choice between two lousy alternatives, resist the temptation to select the "least worst" of them and find a better way to do business instead.
  • Posted on 7/2/2012 at 11:52 AM Author
    thanks for the reply. While I cant argue with your logic, and your conclusion is 'strategically' the right one to aim at, your solution would be 6-9 months away. My issue is now an immediate tactical issue - these catalogs are ordered already (i know...ouch!) so I cant avoid the question about pricing. Yes, its 'least-worst' with all that implies, and i can plan ahead to scrap the paper stuff next year. But I cant wriggle out of the problem right now.

    Overpriced, or non-priced. I have to decide.
    Chris.
  • Posted by marketbase on 7/2/2012 at 12:38 PM Accepted
    If you decide to go with the non-priced version, I've got to believe that customers will shy away--most people like to know price up front. If you decide to go with the overpriced option, you could consider going with a pre-printed sticker (bright neon color background) to place on the catalog's cover offering a % discount off printed MSRP and a phone number to call for quantity pricing (everyone loves a bargain).

    Certainly not the best alternative, but perhaps will give you a way to gather good feedback for future plans--a USPS or e-mailer to go with the web site.

  • Posted by mgoodman on 7/2/2012 at 4:59 PM Moderator
    I get it. My vote is for the catalog with prices printed and the cover that says, "Save 40-60% on everything in this catalog," or words to that effect.

    It's a lousy solution, but the "least worst" of your options.

    Just make sure you don't have to deal with this dilemma again next year. The sooner you can get the electronic catalog working the sooner you can escape from the "worsts."
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