Today I get involved in a very valuable discussion of pricing strategy over a LinkedIn group of marketers. There today’s featured blog was about the pricing strategy for the retails market. The discussion started with Kellogg's model of reducing quantity per price point. I discover the fact that my Chinese client is doing the same in his industry he has re vamped the packing style for his popup canopy outdoor tents. He is now using a single export carton instead of using a separate carton for both the frame and the top cover. Even in some cases he is using a fine polythene sheet to transport the roof top cover instead of using carton t o pack the cover, this has saved thousands of USD in annual. 

In my opinion the pricing for the retail is different from pricing the goods for the business manufacturing. The brand value plays a vital role in the retail pricing. Somehow or other B-B is also providing value to its customer and they charge for it but they mainly don’t emphasize over there brand building phenomena as the cost accrued over the brand image will be much higher and will reflect in the cost of production.

2 comments: