Retail Pricing Strategy: How to Protect Margin and Still Win Trial

Retail pricing is one of the most common reasons brands underperform. Brands either price too high and stall trial, or discount too aggressively and destroy baseline.

Winning brands build a pricing architecture that supports trial, repeat, and retail margin expectations.

THE PRICING ARCHITECTURE

1. DEFINE YOUR PRICE LADDER

• Entry: easiest first purchase

• Core: your volume driver

• Trade-Up: higher margin, higher aspiration

2. PRICE TO THE COMPETITIVE SET
Buyers compare you to what already sells. Pricing must be defendable in one sentence:

• Why are you worth more, or why are you the smarter choice at parity?

3. BUILD PROMO MECHANICS THAT DO NOT TRAIN DISCOUNTING

• Use promos to drive trial, not to create dependency

• Protect post-promo baseline by spacing events and controlling depth

4. GET TERMS RIGHT EARLY
Your trading terms are not an afterthought. They determine your true margin and your ability to fund growth.

KEY TAKEAWAY

Pricing is a growth tool. When structured correctly, it supports both retailer confidence and sustainable brand margin.