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Food Wholesaling and Retailing

Food Wholesaling and Retailing. Part E AGEC 364. Pricing. Complex process multi-product sellers with considerable pricing flexibility set prices to differentiate their stores from competitors. Importance of Pricing. Food retail pricing impacts farmers and consumers

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Food Wholesaling and Retailing

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  1. Food Wholesaling and Retailing Part E AGEC 364

  2. Pricing • Complex process • multi-product sellers with considerable pricing flexibility • set prices to differentiate their stores from competitors

  3. Importance of Pricing • Food retail pricing impacts farmers and consumers • Through food pricing and promotional policies, food retailers influence consumer demand, farm prices, and the movement of farm products

  4. Pricing Strategies • Market basket pricing • Variable price merchandising • “Every-day low pricing”

  5. Market Basket Pricing • Provides retailer with considerable flexibility in pricing individual food items • Total dollar sales must cover expenses, but they do not have to follow wholesale or farm prices • May have low dairy prices and make up with higher meat prices

  6. Variable Pricing • Use temporary, selective price cuts to differentiate their store from competition and attract customers • Loss leader or weekend sales circular • Example: 20% of all food items are priced at or below cost

  7. Everyday Low Prices • Competitive prices with other retailers. • Do not focus on sales. • Can meet competitors prices. • Walmart is example.

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