| Top brands and low prices | | | | The next stage of their pricing policy is the no frills |
| Ross is a retail name that is synonymous with pricing | | | | designs of their stores. By keeping their displays |
| that is lower than market rates. This does not mean | | | | simple and functional and using systems like |
| that they sell cheap goods or knock offs. Their | | | | centralized check outs, they are able to keep their |
| product range comprises of designer and brand name | | | | overheads to a minimum and pass this saving on to |
| clothing for the whole family as well as top class | | | | the customer. In most retail operations it is the |
| home furnishing items. Because customers tend to | | | | overheads that add significantly to the price the |
| look with suspicion at goods that are priced | | | | customer pays. |
| significantly lower than prevailing market rates, Ross | | | | A one point selling strategy |
| does not hide the trade business model they use to | | | | Ross does not offer customers best or most |
| be able to offer these prices. When you know how | | | | comfortable shopping experience. They do not go in |
| they do it, you will know that while you're paying | | | | for any kind of extravagant selling methods. All they |
| rock bottom prices, there is no compromise on the | | | | do is focus on keeping their prices as low as possible |
| quality of what you buy. | | | | and that is what they offer customers. It is a policy |
| The Ross system | | | | that seems to work, considering the popularity of the |
| Ross's product procurement and sales strategy is a | | | | stores and the success that Ross enjoys. |
| simple three step process. First of all, their buying | | | | Great deals every day |
| teams are located at the two centers of the fashion | | | | Whenever you visit a Ross store, you can be sure |
| industry - Los Angeles and New York. This enables | | | | of finding quality clothing and home furnishing at the |
| them to stay in close contact with the market and | | | | lowest prices. But to get the best deals, it's important |
| the manufacturers. This allows them to know how | | | | to keep visiting the stores frequently. Ross stores |
| and where the market is moving, so they can use | | | | are re-stocked at least 3 times a week. Those who |
| their close contacts with the manufacturers to | | | | are present on the day the new stocks come in |
| negotiate the best possible deals. There is no long | | | | often clean out shelves of the best deals, so that |
| term planning involved, or fixed pricing policies. When | | | | those who come in later will not know what they |
| they see what the market wants, the move in and | | | | have missed. And because of Ross's low inventory |
| buy at the lowest prices. | | | | policy, there is no certainty as to when those goods |
| Secondly, they buy in limited quantities based on how | | | | will be replenished. At Ross stores the best way to |
| fast they think goods will move off the shelves so | | | | shop is to go often and when you see a great |
| that their inventories are kept low - something that | | | | product at a great price, snap it up. It may not be |
| reduces their operational costs | | | | there tomorrow. |