Pricing Strategy The competitive forces of current rivalry among existing companies is extremely high. Especially in the chase of Charity shops such as Salvos and Vinnie’s. Therefore, for this Op-Shop to operate in a similar space but a vastly different location the component of pricing needs to be addressed. For the budgeting and breakeven analysis to be effective the price must be encouraging enough for customers to buy and lucrative enough to run the Op-shop as a business. To encourage the development of a pricing strategy the uses of other charity shops pricing will have to be not only used but expanded upon. Thrift Stores, Op-shops and Charity Shops that are successful all have one thing in common. The turnover of possible stock. To overcome …show more content…
Any marketing will have to focus in two segments of the business. Firstly, the customer acquisition cost that all business deal with traditionally. Secondly the segment that surrounds the stock acquisition cost. The Op-Shop itself would need to create movement to start. As the personal sales will be mainly promoted thru the focus on the component of product and leverage. This will form the bases of the practical advertising campaign. To obtain customers digital marketing will be an absolute with the focus being social media networks. The cost of customer acquisition will be very little minimal. As the only use of targeted ads will be to provide information around the dates of the dead stock flash sales. Meanwhile the stock acquisitions will be relatively higher in comparison. As the need for quality stock will have to come from people outside the area of influence the Op-Shop would be servicing. That is public servants, people on postings to Canberra or just generally people with disposable income. These types of people would be perfect to market towards as they a high number of unwanted stuff in high quality. These quality goods would also be obtained because of the social guilt that they would have by keeping it unused or disposed. By directly marketing the …show more content…
By having the public on good terms will allow the Op-Shop to function smoothly and obtain profitability faster. This could be done directly by sales promotions of the timing system. Another component would be the use of store credit to any high-quality item that is donated through the cycle of opportunity shopping. This symbolic credit would be twenty five percent of the Op-Shops selling cost. This symbolic credit would create brand loyalty and further donations to drive down stock acquisition