Ever wish your customers would say this more? Who could blame you. Typically, businesses get so in tune with hearing about how they really need to have a sale to drive product in certain categories, that they don’t stop to think about which categories may or may not actually need the promotional price drop. We’ve taken a look at over 100 categories across 10 banners in Ontario and decided to share a couple of really fascinating secrets with you. People WILL in fact pay more for specific categories at the grocery store. So let’s dive in.
It’s definitely no surprise that Gourmet Foods came in hot at number one out of 103 categories for ‘willing to pay more’. It is gourmet after all, and when an item or commodity is considered a luxury item, most shoppers have the expectation that it will cost more so they don’t mind paying. But what about some other high ranking examples? Well just 2 behind at rank number 3 is Served Deli Cheese. Which is surprising considering how popular those individually wrapped ‘singles’ seem to be in Canadian homes. Likely the most surprising however, is Meals to Heat just barely sneaking in at number 5. In fact 48% of shoppers say that they would be willing to pay more for a ready hot meal that they perceive to be a higher quality than the competition. But what about the bottom ranked categories?
Sorry Soft Drinks, in case you didn’t learn from last week, customers will seek out the best places to find the lowest prices on their favorite CSD’s. In total, nearly half of customers say that they would not pay more for their go-to carbonated companion. Keep those prices low! Do you know what else people want to be able to do on the cheap? Smell good. Probably the most shocking category to make the list is Deodorant coming in at number 5 for least likely to pay more. Looks like customers already have a preconceived notion about what they want to pay for their brands, and as a result, have decided that their underarms are not worth further investment for something different.
Are you reading this thinking about how we just told you something about your category that you didn’t know? Are you maybe reading it wondering in suspense where your category falls on this list? You very well may be giving customers a break on a product they would gladly pay more for! Maximizing your promotions and price balancing is of paramount importance in today’s marketplace, and getting started with the right data and insights is step one. We can’t wait to help you achieve the upper hand in your business. So feel free to reach out any time.
