O'Reilly logo

Your Success In the Retail Business (Collection) by Barry Berman, Richard Hammond

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 7. Implementing Cost-, Differentiation-, and Value-Based Retail Strategies

Cost-Based Strategies

There are three overall types of cost-saving opportunities. The first form deals with obtaining better prices due to high bargaining power. In general, large retailers with centralized purchasing organizations or that concentrate their overall purchases in a small number of SKUs are best able to secure the lowest prices. Retailers with strong private label brands are also able to use these as means of negotiating better prices for manufacturer-branded merchandise.

A second form of cost-based strategy is through a retailer’s reducing bad costs. Some bad costs are incurred by chains that overly centralize strategies across the United States, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required