|
 |
The dicey part of price updating is ensuring that shelf tag prices match register prices.
If an item’s register price is higher than its shelf price, customers complain and stores may be fined... and receive damaging press. If the register price is lower, stores lose revenue.
Food wholesalers often
offer, for a fee, price maintenance service to their grocery customers.
Having a third party do price maintenance is popular because most small
chains do not have systems that communicate with in-store registers. The
service can cost a ten-store chain $90,000 to $150,000 annually. Integrated
enterprise systems simplify price change coordination. Labor and mistakes
are reduced. Fewer shelf tags are lost.
Chains receive additional benefits by controlling product information.
Buyers have immediate access to cost, prices, and historical sales data
on each item for which they are responsible. Moving product data in-house
tilts the balance of power in favor of the chain vis-à-vis wholesaler.
CRISP automates the process. If a store wishes to invest in electronic shelf tags, CRISP drives them directly from “register” SKU data — insuring price integrity. For stores without electronic shelf tags, CRISP prints labels and facilitates wireless verification.
CRISP also lets chain headquarters staff dial into stores to verify prices, analyze sales volume, oversee cash activity, and perform other management functions—while the lanes are running and without store personnel knowing they are being monitored. Data is available in realtime to Web sites. Chain operators who take advantage of such communication features tend to grind down competitors who lack the features.