Question

What is the "opening price point"? how is it used to increase sales at Walmart?

Answer 1

Wal-Mart was founded by Sam Walton and he founded a uncompetable sale formula of "opening price point" item in each category of the product.On all of the products like Televisions or apparels. This is a low price technique to attract the consumer's attention and also create their image or brand who is selling product at a low price as compare to the other higher price points.

Wal-Mart decided to took first big challenge by developing its own infrastructure and distribution channels, Before Wal-Mart decided to took charge of its own retailers and distribution networks and traditionally depended on wholesalers, Walton discoverd that not even a single wholesaler distributors at that time were interested in providing the sufficient services to their customers so the Walmart decided to eliminate the whole seller from the Walmart business.

And, Walmart also stated using a software called trend-forcasting software which was used to track customer behaviour and this software helps Walmart to increase their sale through the trend analysis and it costs around $4 billion.This software system provides them information on consumer behavior, from the data collected in the form of coding which collected through the customers checkout.