Black Friday is coming up once again. Government subsidies have run dry. Shipping bottlenecks are responsible for some empty store shelves. And employee shortages will likely cause longer than usual checkout lines. So, just what can we expect to see for this busiest month of shopping? Helping us answer this question and more is John Ricci, CEO of Danavation Technologies.
Q&A:
- What is your forecast for retail sales for Black Friday and beyond?
Answer: People will buy gifts as always. But there will be two key differences. First, there will be shortages of some items, meaning many of us will be getting second and third choices on items. Second, prices will be higher. So, when the experts crunch the numbers, sales totals will look positive, considering we’re still in the middle of the Covid mess. But the total volume of actual products purchased may be static or down. So, the stats will represent a false feeling of security when artificially kept high from inflation.
- Inflation is a vicious cycle. It’s kind of like paying the carnival game, Whack-a-Mole. When costs rise for a manufacturer, they bop it on the head and pass it on to a retailer who bops it on the head by raising prices. Then the consumer bops that hike on the head by telling their employer they need a raise or quit. So is there any winning here?
Answer: In the game of whack-a-mole, you can never whack all the moles. There are always more popping up. However, businesses can mitigate the moles during an inflation cycle by being as efficient as possible to remain competitive and minimize price increases.
- The world is witnessing shortages on almost everything, ranging from om household goods to building materials frequently due to container shipment delays. In your opinion, are we going to see that shift back to normal anytime soon?
Answer: Unfortunately, this is likely to be the new normal. Don’t expect it to go back to business as usual for a long time.
- Let’s talk more about inflation. The government exempts large categories like gas and food, claiming they are too volatile to include in their formulations. Is that a fair way of measuring our pain?
Answer: If we go by the Fed’s formula back in the 1990s, the inflation rate is around 10% or higher. But there are some categories like gas prices that are undoubtedly significantly higher than the government numbers.
- John, when we go to the store and look at prices, sometimes we see a double label on retail products. Typically, which price tag is higher, the one on the bottom or the one on the top?
Answer: (slight chuckle) 99% of the time, the price tag on top is the higher price, because of inflation. The United States has become an inflation nation, and it is doubtful that it will slow down anytime soon.
- How can businesses maintain efficiency during this ‘new normal’ of escalating inflation?
Answer: One way our company, Danavation, is offering to companies is to convert the old paper price tags into Danavation Digital Smart Labels. They allow a retailer to change the price of any product at any time with just a few keystrokes. This extra efficiency and labor savings could lead to a price hike of only a nickel instead of a dime. It all adds up. And Digital Smart Labels that can be monitored and changed in seconds and remotely.
- Tell us more about Danavation digital smart labels and Danavation.
- Thank you, John Ricci, for your time and insight. Where may we get more information on this subject and your company, Danavation, including investment opportunities now that your company has gone public?
Answer: www.Danavation.com
ABOUT YOUR GUEST, JOHN RICCI…
John is the founder of Danavation Technologies. Through his leadership and over 25 years of experience in retail marketing, Danavation has grown to become an industry-leading organization. He oversees and manages the company’s operations, inspiring action and forward-thinking while maintaining a stable financial base that levers the business.
CONTACT: To schedule a radio or television interview with John Ricci, you may contact Jerry McGlothlin at 919-437-0001 jerry@specialguests.com
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