Customers will often pay more for merchandise if they get courteous service. Pricing Below Competition Many vendors have been very successful using this pricing strategy. Pricing goods below the competition can be difficult to maintain. Because every cost component must be constantly monitored and adjusted. It also exposes a business to pricing wars.
Competitors can match the lower price, leaving both parties out in the cold.
This strategy is possible when price is not the customer's greatest concern. This strategy targets a specific segment of the buying public by carrying products only in a specific price range. This strategy involves selling a number of units for a single price. This is useful for low cost, consumable products like shampoo or toothpaste. Many stores find this a desirable pricing strategy for sales and year-end clearances.