Pricing Revisited

Throughout the week's discussion we examined Price from a variety of perspectives. This included the retailer selling the product to the consumer, the manufacturer, and in some cases the supplier or wholesaler. "walking in the shoes" of these perspectives provided me with a key take away in pricing considerations. Pricing is not a set decision, and an inflexible pricing system could result in drastic setbacks for companies attempting to enter the market. In addition when pricing one must consider the various mark ups that take place between their last interaction with the good and when the product eventually reaches the consumer. The True Religion Jeans example we discussed in class showed how a product can sometimes undergo a 300% markup from manufacturer to the end customer, causing one to ponder as to the true value of a brand, and how that brand factors into pricing. 

This idea leads into the Culinarian case where there seems to be an inverse relationship between offering price discounts and establishing the company's brand prestige. In this case it becomes apparent that not only does the pricing strategy have implications for projected revenues, but the perception of their brand's target market as a whole. If price discounts were offered it seems to lead to a slippery slope of pricing gimmicks to increase revenues as opposed to staying true to its mission of providing premium cookware to culinary aficionados. this case shed light on a key point I've discovered from our discussion of pricing strategies. The case revealed that while pricing strategies have direct influence on the margins and revenues your company accumulates throughout the fiscal year, it also has direct influence over perceived value of the brand as well as the strategic positioning of the firm.