Cost Effective?
The Web’s effect on pricing strategy as it turns branded products into commodities, Part 1 of 3
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Jim Coogan
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Most catalogers’ current pricing strategy is to have the lowest market price available — either matching or beating any competitor’s best price. This policy is typically supported with a lowest price guarantee. It’s becoming common for most catalogers and Web merchants to offer the same low price on branded products. You can’t sell products above the market price, and you can’t go below the floor price without violating manufacturers’ pricing guidelines or having your margin evaporate and the products become unprofitable.
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Jim Coogan
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