Money is not easy to get. People have to work for it by giving their time and effort. That is the reason why people are careful when spending their money. Saving is necessary when one is shopping. Purchasing products that have the best prices in the market is what consumers look forward to. In the United States, Kroger is the leading grocery retailer. Kroger has values that help fulfill its purpose. The grocery retailer has a butchery, bakery, dry goods, and produce all under one roof. Let us learn about ‘Kroger Price Match’.
Kroger Price Match
Kroger does not give the customers a price match strategy. Price match means a retailer gives the customers an option to compare the prices of products they sell with prices of similar products in different stores so that the retailer can sell the product to the customers at the lowest prices. The prices of similar products can differ from store to store. Some stores adopt a lower pricing model so that consumers shop from them often and allow consumers to get products at prices they can afford. To ensure they retain their customers, retailers use a price match strategy. Price matching helps retailers to lower their product prices so that their customers get the best price possible.
Overview
Under the price match policy, if a consumer buys goods at a given price from a store and later finds out that other stores are selling the same product at a lower price, the customer can go back to the store where they had bought the product and give evidence that the item costs a lower price in another store or other stores and the customer gets a refund for the difference. There is a thin line between price matching and price adjustment. Price adjustment means that a given retailer compares different prices of products in his store as time goes by.
The price match strategy can differ from one store to another. Stores may choose to lower their prices to match those of the competitors, stores can choose to lower the prices of their products than the prices of their competitors, stores can lower the prices of products to match the price of competitors after selling the product and finally, a store can lower the price of its products for a period during which customers that had bought the products at a higher price can get a refund.
Kroger opts for penetration pricing. Kroger makes sure that the prices of the products they offer to their customers are as low as possible and do not need to be changed by any comparison with competitors. Kroger is the leading grocery retailer in the United States and can negotiate better deals with food suppliers. Kroger also operates its manufacturing plant. The cost of operation is low because of these factors, making it possible for Kroger to lower the prices of its products. Kroger has a coupon policy that benefits its customers. It is the strategy that Kroger uses to attract its customers. Kroger also gives discounts for the products it stocks.
What Are The Benefits Of Price Match?
With price match, consumer stays on the lookout for product prices in the market. The retailer can therefore concentrate on factors that benefit customers other than the prices.
Price match makes retailers earn confidence from their customers. Customers view the retailers who give price match strategies as honest and fair. Dealing with a flexible retailer who does not stick to fixed prices is more convenient for the customers and as a result, they become loyal to the retailer.
Retailers who maintain customers due to the price match policy can make more sales because the price match policy attracts more customers.
What Are The Limitations Of Price Match?
Every store has its costs different from the costs of its competitors. Cost is a factor to consider when setting product prices. Lowering prices to that of a competitor can cost a retailer if the cost factor is not considered. The profit margins of a retailer may be affected negatively.
The quality of items price matched may be compromised because low-quality items are easy to sell at low prices without making a loss.
The risk of losing customers to competitors is high. If the customers have to be the ones to stay on the lookout for lower prices of products, they may settle for the competitor with low product prices since it will cost them nothing. In addition, the retailer offering a price match strategy will demand proof of price difference from the customer while the customer may choose to avoid this.
Reducing the prices of products because of competitors can be demoralizing for the retailer. Every time competitors reduce the prices of the products, the retailer also has to reduce and it becomes a cycle.
Conclusion
Every retailer aims to increase sales while every customer aims to save as they shop. To strike balance, price match can be considered as one of the many ways to get customers and retain them.
