Frontline employees are the key to success because they perform the services that form the basis for the value package. C. Pricing Strategy 1. Pricing can be a powerful competitive tool for retailers. Some stores follow a one-price policy. Discount retailers market top-quality and lower quality products in large volumes at low prices but with few services.
Discount retailers sell merchandise at a reduced price.
They carry lower product and service costs and lower profit margins. Because they add only a tiny profit margin, they offer lower prices than other retailers. Some manufacturers prefer to open factory outlets to control the way their products reach customers. Full-price retailers offer better quality brands without discounts. Prices reflect a profit margin higher than discount and off-price retailers.