PriceSmart’s Buying Operating Strategy
PriceSmart offers its paid members low prices on a limited selection of nationally branded and private label merchandise within a wide range of product categories. Rapid inventory turnover, high sales volume and reduced operating costs enable PriceSmart to operate at lower gross margins than competing discount chains and supermarkets.
Exciting Merchandise
PriceSmart buyers are focused on purchasing and consistently rotating through its locations a unique assortment of products that members will be interested in buying even if it is not on their shopping list.
Low Prices
PriceSmart buyers are focused on making sure products are purchased and distributed in the most efficient way ensuring low prices. When savings are found, PriceSmart believes it should be a conduit for any price reduction and those savings are reflected by lowering an item’s retail price.
Private Label
PriceSmart’s private label strategy is similar to the strategy used by BJ’s, Costco and Sam’s Club. The company believes that not only does a good private label provide additional value to the member through lower prices and/or higher quality merchandise but it creates negotiating leverage versus national brands.
Local Vendors
PriceSmart works with a number of small local and regional vendors and in some cases, it has been able to help those companies expand outside that initial market.
Learn More
To read more about PriceSmart’s buying and operating strategy and how to sell them, download for free the PriceSmart Buying Operating chapter from the 2024 Warehouse Club Industry Guide.