In price formation policy, Leroy Merlin, as in everything else, strives to be as close to the consumer as possible. All stores maintain the most democratic level of the cost of goods. The company's goal is to provide an opportunity to purchase the necessary products for EVERYONE. Naturally, this is why the retail chain takes care of attractive figures on its price tags.
For many people, cheapness is immediately associated with low-quality products. But in Leroy Merlin stores, quality is monitored very strictly. Low prices are created primarily due to the sales format itself. Large volumes of products sold bring the company closer to wholesale sales (which are also carried out in considerable volumes). Accordingly, such volumes bring good profits, and there is no need for stores to chase every penny.".
As you know, the more intermediaries there are between the manufacturer and the consumer, the more expensive the product will eventually be. Leroy Merlin works with wholesale suppliers directly, bypassing small intermediary companies. This is another factor that allows you to reduce prices. Today, when choosing a store, people pay attention not only to the quality of the product and the assortment, but also to the prices. Accordingly, the company that is able to offer its client the best deal becomes in demand. But it is impossible to reduce prices "just like that" without thinking through this step - you will have to give up some of the quality. Leroy Merlin has managed to combine low prices with product quality and a high level of service. This became possible due to the fact that the company's specialists get rid of all unnecessary expenses.
A well-thought-out logistics system makes it possible to significantly reduce transportation costs. Careful training of employees leads to the fact that even in the largest hypermarkets it is possible to manage a relatively small number of employees, and all of them do an excellent job.
Many products are sold directly from warehouses, bypassing store shelves. It also reduces the costs associated with sales in sales halls: rental costs, consultants' salaries, etc. And, of course, low prices are formed due to successful cooperation with partners. The company always buys products in large quantities, for which it receives wholesale discounts. These same discounts eventually translate into favorable prices for the end user. In a retail store and in a large hypermarket, the cost of the same product is likely to be different.
The company's development strategy provides for each branded store to achieve the lowest prices for its products compared to other outlets in the city. Branded hypermarkets regularly hold discount promotions, which are not symbolic at all, but allow you to save a lot. The promotions relate to both the cost of goods and the cost of services. dude spin
For many people, cheapness is immediately associated with low-quality products. But in Leroy Merlin stores, quality is monitored very strictly. Low prices are created primarily due to the sales format itself. Large volumes of products sold bring the company closer to wholesale sales (which are also carried out in considerable volumes). Accordingly, such volumes bring good profits, and there is no need for stores to chase every penny.".
As you know, the more intermediaries there are between the manufacturer and the consumer, the more expensive the product will eventually be. Leroy Merlin works with wholesale suppliers directly, bypassing small intermediary companies. This is another factor that allows you to reduce prices. Today, when choosing a store, people pay attention not only to the quality of the product and the assortment, but also to the prices. Accordingly, the company that is able to offer its client the best deal becomes in demand. But it is impossible to reduce prices "just like that" without thinking through this step - you will have to give up some of the quality. Leroy Merlin has managed to combine low prices with product quality and a high level of service. This became possible due to the fact that the company's specialists get rid of all unnecessary expenses.
A well-thought-out logistics system makes it possible to significantly reduce transportation costs. Careful training of employees leads to the fact that even in the largest hypermarkets it is possible to manage a relatively small number of employees, and all of them do an excellent job.
Many products are sold directly from warehouses, bypassing store shelves. It also reduces the costs associated with sales in sales halls: rental costs, consultants' salaries, etc. And, of course, low prices are formed due to successful cooperation with partners. The company always buys products in large quantities, for which it receives wholesale discounts. These same discounts eventually translate into favorable prices for the end user. In a retail store and in a large hypermarket, the cost of the same product is likely to be different.
The company's development strategy provides for each branded store to achieve the lowest prices for its products compared to other outlets in the city. Branded hypermarkets regularly hold discount promotions, which are not symbolic at all, but allow you to save a lot. The promotions relate to both the cost of goods and the cost of services. dude spin