Many retailers concentrate on service products. Such stores often sell related goods, but their primary purpose is to provide a fast, quality service. 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.