One of the many challenges that Internet brought into the retail business is the ease the consumer can compare prices.  This gives an enormous power to the costumers. Online has really brought the true competition into retail business.

The price transparency brings a huge pressure on the margin/ profitability of the retailer. Wall Street Journal debates in this article ways to use in order to limit the number of bargain hunters coming onto your virtual or physical shop.

In a very competitive and open market, price setting has become more complicated than ever.
In this post you may find a few things to take into account when setting your retail prices.

After some time spent as a professional retail buyer in different organizations, I became aware of the universal and seemingly never-ending conflict between buying and sales/marketing (operations).

In simple words the whole conflict is reduced to “purchasing did not get us the right product/ right prices” while buyers blame “operations are not capable of selling our wonderful products”.

There are many reasons why this conflict is always bubbling over. It has to do with organizational culture, with the strong ego of company leaders, with the lack clear management accountability, etc.

The one key-word, actually the one key-action everyone forgets about is cooperation.

David Aaker wrote a great book about this organizational internal conflicts and he explains how this so-called “organizational silos” becomes obstacles to effective and efficient development of a strong brand and company.

Aaker uses a silo as a metaphor for “organizational units that contain their own management team and talent and lack the motivation or desire to work with or even communicate with other organizational units.” Organizations must find out how to remove the problems caused by silos without losing the benefits they can provide.

In his book called “Spanning Silos: The New CMO Imperative”, Aaker provides a road map that gets different parts of an organization to collaborate together. His book is full with real life examples, besides the academic and theoretical information.

I consider the below video presentation about his theory to be of great value for any retail professional. I also recommend his book, one of the best I ever read on the topic.

The answer to this question is the key to my idea of doing business. It is my personal answer, of course and it is the result of my own journey in retail, which started in ‘97. I was working as a salesman to support my studies (which, by the way, had nothing to do with retail, au-contraire). Afterwards, I spent a short and disappointing (financially mostly) period as a young promising engineer, but got back to the retail world relatively soon and luckily this prove to be a permanent and fulfilling career.

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