1. Be transparent.
Let the customer know that you’re not overcharging them. Use signage to explain why certain items cost what they do, and if necessary, point them to similar but more affordable substitutions. For example, if you sell saffron you might have a sign that explains that saffron must be picked by hand, which contributes to its higher price point. Suggest turmeric as a substitution.
2. Be cheaper than the competition.
Make the hard decisions to determine where you can cut and raise prices. You may drop the price on known value items such as eggs, milk and toilet paper—products that shoppers purchase frequently. To make up the margin loss, increase the price on the specialty and gourmet items you carry.
3. Educate, educate, educate.
Since the majority of all dollars spent in the grocery industry goes to Walmart, Patterson says, you need to educate your shoppers on why you carry what you carry, why it costs what it does and why it’s better for them. Natural products retailers are on the front line to help people understand why they should care about their bodies, their community and the planet.
For more tips on how to provide engaging customer education in your store, see these tips from Mustard Seed Market and Café.