Comments on discussions

· Markup pricing: The difference between the selling price of a good and its cost. Charging higher than the cost to make a profit.

· Target-return pricing: The firm determines the price. A formula is used to calculate.  Investments

· Perceived-value pricing: Buyer’s image of the product. Setting a price based off of what how much the customer is willing to pay. 

· Value pricing: Relatively low prices for good quality items. “Target & Ikea.” 

· EDLP: Everyday low pricing: Constant low prices with little or no promotion or sales.  “Walmart”

· Going-rate pricing: The firm bases its prices largely on competitor’s prices. Typically seen in smaller organization when they market their prices to tailor those or follow those of larger organizations.

· Auction-type pricing: one seller many buyers, one seller and many buyer or one buyer and many sellers, all buyers submit in dicretion.  

As a consumer I am a favorite of the value pricing.  I like to know that I’m getting decent quality items or services at a great price.  There’s the old saying “you get what you pay for” and I believe that whole heartedly.  I do agree that organizations need to earn profit after all they are a business as well, and I understand that difference times and seasons allot for different prices which is why I understand the fluctuations that may occur.

Kotler, Philip & Keller Kevin L.  (2016).  Marketing Management.  Pearson Education. 

Discussion 2

EDLP also is known as everyday low pricing is when a retailer charges a constant low price with little or no price promotion or special sales (Kotler & Keller,2009). The ultimate retailer that has mastered the EDLP strategy is Wal-Mart and Aldi. Both companies have been extremely successful offering its consumers constant low prices resulting in consumer loyalty and trust by the consumer. The consumer knows right away that when they shop at these shops will always offer everyday low pricing. As a consumer, I am drawn towards retailer stores that utilize the EDLP strategy because finding the lowest price for goods each week is time-consuming and stressful. It is just easier for me to go to a Wal-Mart and Aldi for my everyday needs.

In terms of my preference for an average price to stay the same within an organization, I would select option (1) set one price and not deviate. Setting one price reduces the organizations overhead when investing in advertisements, commercials, etc. Additionally, if a powerhouse organization like Wal-Mart and Aldi have positive revenue year over year it supports one-price strategy with consumers as a strong selection. Having worked in retail I do not think to employ slightly higher prices most of the year but at times offering slightly discounted prices is not profitable because there is a very little margin in products. A great example would be Black Friday, Cyber Monday and Christmas in July sales that result in organizations going into the negative offering great deals but loses all its profits. Whereas if the prices are set to one price consumer traffic would be constant thought the year and staying profitable.

Reference

Kotler, P., & Keller, K. L. (2009). Marketing management. Upper Saddle River, NJ:      Pearson Prentice Hall.