Empower Pricers

Empower Pricers
Empower Pricers

Measure Outcomes Versus Outputs

At Goodwill, most store employees are evaluated by the amount of sales made. This is considered an outcome. Pricers are evaluated differently. They are evaluated based on the amount of items made. This is considered an output. Why aren’t pricers evaluated the same way as other store employees?

It’s because traditional POS systems don’t keep track of production data. Thus, when an item is sold, the POS system has no idea who produced that item. And unfortunately, most production systems aren’t tightly integrated with the POS system, so the production system has limited knowledge of sales activity. Neither system can provide the outcome data Goodwill needs.

Decision makers want outcome data, but they settle for substitutes when they can’t measure the real thing. AMI is tightly integrated with the POS system and measures pricer outcomes.

Outcome Versus Output

Align Individual Goals with Organizational Goals

The current way that Goodwill measures pricers is counterproductive. It encourages pricers to indiscriminately put items on the floor to meet their quantity quota. Managers tell pricers that sales are most important. But, they measure pricers based on produced quantity, not sales value.

This is inconsistent. If the organizational goal is additional sales, then the individual pricer goal should be additional sales. A new rating system is needed to align these goals. When the goals are aligned, pricers will concentrate on sales rather than production quantity.

This will prevent bad behaviors because there’s no incentive to make items that won’t sell. In addition, pricers can be held accountable to the same goals as other store employees and receive similar incentives.

Align Goals

A New Incentive System

At Goodwill, the pricer position is under-appreciated and underutilized. The pricer position is similar to the buyer position in a traditional retail store. Improving pricer performance can make a big difference to the bottom line.

A new incentive system for pricers should be considered. It is based on the dollar value of items sold rather than the number of items made. It gives pricers the opportunity to showcase their skills and be rewarded for it.

A New Incentive System

Triage Method of Pricing

With a new incentive system in place, pricers will want to maximize sales. One approach to improving sales is to use the triage method of pricing. This is similar to how doctors treat patients in an emergency room.

Rather than plowing through an entire crate of donations from top to bottom, pricers can pick through it to find the best items. After the best items are priced, they move on to the better items. Finally, they price the good items.