Retail Prices

Have you noticed that the Retailers have had to cut prices numerous times to sell their goods these days? Has this conditioned the American buying power to buy at these low prices? Especially when it seems that the vast majority of us have little money to freely spend on life's little extras. So this leads back to the title of this post "Retail Prices"; what is a Retailer to do now? How does a Retailer raise the price back up that will reap big rewards/profits?

You could keep your price's low; and go with EDLP (everyday low pricing), as Walmart and other retail giants have done. But one problem with this is that you (the retailer) will have to sell large quantise; to ensure that you make a profit, and that might be harder then you think. So what happens to the smaller retailers; that do not have the high volume of sales, to keep their prices low to compete against the larger retailers? Bankruptcy which is happening allot right now! Raise your Price's and hope that your loyal customers keep you alive. Or have better customer service then the larger retailers have; this way with the increase in prices the customer will know that it is for the customer service aspect you provide. This might last a little while until a large retailer gets on the band wagon and provides a high level of customer service; then you are in the a slow sinking pit of quicksand.

So is the fate of the American retail world in the hands of the large retailers? And would this be so bad for the buying buck? what happens when we are down to a handful of retailers? What then happens to the prices? If there is no competitions then you can charge anything you want (monopoly is ugly if you are buying, but great if you are selling.

Lots to think about, so have fun buying all your dreams while they are on sell.