Should you be slashing your prices?

Is the broad-based discount strategy that many large chain supermarkets have employed to draw in business and increase purchases a good strategy?.The Lempert Report believes that by proclaiming price cuts on thousands of items, chains run the risk of upsetting customers, thus sealing their own less than positive fate.

The Supermarketguru.com Consumer Panel “Price Cutting” quick poll gives you a snapshot of what consumers really think regarding store wide slashes:

The majority of shoppers(68%) believe that stores are only lowering prices because they are desperate for sales, while 18% believe stores were lowering prices in response to shopper demand.

Consumers still highly value price (48%) and quality (41%) when it comes to market selection. Service, relationships, and convenience only ranked in single digits.