Thursday, March 4, 2010

Cost-based Pricing

Kotler describes cost-based pricing as "setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for its effort and risk."

Staples has started a new ad campaign that showcases their low prices respective to the industry. A customer is shown exclaiming that "wow! that's a low price!" at every item he sees. Then, one employee asks another employee how many products they have, and the reply is over 7000. The employee then goes and gets a cart for the customer. This implies that all of their products are low-priced, and that the customer is going to want to purchase them. They end with the line "Staples has low prices on everything you need for your office, and we mean everything." This explicitly states their low prices on everything that was implied earlier by the commercial. Staples is positioning themselves against their competitors as the "low-price" option for those who care about saving the most money.



Ian Robertson
Section E

2 comments:

  1. It is unclear that this is cost-plus pricing. They may be pinned to competitors' prices, or they may estimate a low perceived value.

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  2. Nice information on here, I would like to share with you all my experience trying to get a loan to expand my Clothing Business here in Malaysia. It was really hard on my business going down due to my little short time illness then when I got heal I needed a fund to set it up again for me to begin so I came across Mr Benjamin a loan consultant officer at Le_Meridian Funding Service He asked me of my business project and I told him i already owned One and i just needed loan of 200,000.00 USD he gave me form to fill and I did also he asked me of my Valid ID in few days They did the transfer and my loan was granted. I really want to appreciate there effort also try to get this to anyone looking for business loan or other financial issues to Contact Le_Meridian Funding Service On Email: lfdsloans@lemeridianfds.com / lfdsloans@outlook.com He also available on WhatsApp Contact:+1-9893943740.

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