6 noteworthy trends the dutch food industry is finding from covid round 2 (part 5)
Welcome back to the series! Today, Part 5 deals with pricing.
#5: More Complexity Around Pricing
Prices are constantly rising and falling. This is nothing new. Supermarkets always monitor each other’s prices. Doing so now is even more important and time-consuming, as fresh outbreaks continue to spread across Europe.
Although margins are under pressure, now is not the time to price yourself out of the market. Public complaints about large supermarkets raising prices are rampant and damaging. Here’s our advice:
- Monitor competitive prices early and often. The use of pricing software can alleviate the heavy legwork involved in this.
- Establish real-time alerts for trends that affect prices. For instance,
- Weather conditions – Dutch food companies are seeing homegrown fruits and veggies spoiling quickly due to weather. In addition seasonality is causong prices to vary greatly. Strawberries are now much more expensive than a couple of months ago, while lettuce and cucumbers are now much cheaper.
- Pandemic Economics – What are the supply problems… either obvious ones, like toilet paper, or less noticeable ones, such as expensive and exclusive products? How can you react faster and serve people at the very moment they are willing to spend more during a pandemic? Just look at the record sales that websites such as thuisbezorgd.nl are experiencing. That tells all.
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