SHORT-LIVED PREPRICING CALLED NIGHTMARE

RICHARD TURCSIK

SECAUCUS, N.J. -- The proliferation of short-lived prepriced items from manufacturers has become a thorn in the side of retailers, according to a panel of retail buyers from leading chains in the New York area.

"There is much, much too much prepricing going on today, and it has created havoc. There can be too much of a good thing," said Gary Hilliard, vice president of grocery for Twin County Grocers, Edison, N.J.

Hilliard discussed prepriced grocery items during a buyers' panel discussion seminar at the New York State Food Merchants Association/New Jersey Food Council joint convention and trade show, which was held at the Meadowlands Convention Center and Meadowlands Hilton hotel here earlier this month.

"Preprice is still a good tool and probably can still be used in the future, but we're certainly going to pick and choose how we use it," he said.

Jim Tracy, vice president of grocery marketing and frozen food for Wakefern Food Corp., Elizabeth, N.J., who also spoke on the panel, said manufacturers using prepriced items should restrict it to their best-sellers, offer a significant reduction from the regular price, and offer the prepriced for a minimum period of at least six months.

"The phase-in of the prepriced and the phase out 'X' number of months later from prepriced back to the regular price is an operational nightmare, both at the warehouse and at the front end," he said.

"Where possible, prepriced should be minimized and only done on key items with major percentage reductions. In other instances, I believe most of the retail community would be willing to reduce the retail for the prescribed period of time if the allowance on the straight deal was the same as on the prepriced," he said.

Speaking on a related topic, Larry Gerolami, grocery buyer, King Kullen Grocery Co., Westbury, N.Y., said manufacturers need to step up their advertising schedules when it comes to new products.

"I would like to see the manufacturers come on board faster with whatever advertising or promotions they are doing with new products. It is too long of a period from the introduction to when most of these promotions start. You might have an eight to 12 week period of sitting on the shelf taking up real estate and you are not getting those turns. The manufacturers have got to respond faster with the advertising if the products are to be successful," he said.