Category: Price

Own label compensation »

Some companies deliberately sell the same product for a much lower price, even though there is a real danger customers will find out.
Why?
* To recruit customers to the brand (Boss selling ’seconds’ in factory outlets can attract people who may trade up next time to higher price products)
* To clear out stocks
* To help cover [...]

Discounter hotel? »

When your pricing strategy is like Aldi’s - low price, always low price, but good reliable quality - you’ll be pigeon-holed as a “discounter”. There’s nothing wrong with this strategy, as long as you sell products in high volumes. Which is precisely what Aldi does - it’s the No1 in Germany apparently (though it would [...]

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