Setting RSP (Retail Shelf Price) for individual products, manufacturers and retailers usually take into account the prices of their similar products and that of the competition.
Another rule which allows them to cover additional costs is to raise the price of the product through the added value of the product itself. It can be the form of the product (e.g. a set of separately packed mini products) or packaging (e.g. a zip - lock that makes it possible to open and close of the product multiple times). We follow the principle that the shopper is ready to pay more, when he can see the benefit for himself.
“Generally” does not have to mean “always” as we can see in the attached photo from Lidl, where cheddar cheese of identical weight is displayed as 2 separate SKUs. The first one is sliced, while the second is in a block, but the price is the same. Whether it is planned or the result of a calculation system (e.g. the purchase price from the manufacturer is identical), we do not know. Each of the decision makers must remember that millions of small transactions make up a company's profit.
If you'd like to download the high resolution photo click: photo1
