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Is MSRP becoming less credible? | RetailWire

Now, I’m all in favor of retailers mining their own data and honing their analytical skills. Hey, algorithms can be a blast. But if you’re a retailer who doesn’t even listen to ideas offered by vendors — especially about pricing — you’re shooting yourself in the instep.

At bottom, pricing makes you or breaks you. You either lose a sale with too high a price, or lose margin with too low a price. IRI’s research says that for a typical $1 billion CPG retailer, a one percent improvement in price yields net earnings gains of $10 million. That same one percent improvement in merchandising costs yields just under $8 million. And for operating costs, it yields under $2 million.

What’s more, price per volume has shifted in some key categories since 2011, according to IRI. It’s amazing to see the shifts in yogurt, juices, meat and seafood across different distribution channels.

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RetailWire News Article: Is MSRP becoming less credible?.

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