Glitzz: Devising a Pricing Strategy

The Price means the cost of the product that customers pay for their treatment or buying a product. “Cambridge Medical & Rehabilitation Center is a portfolio company of TVM Capital Healthcare Partners, an extremely concentrated private equity and growth capital firm focusing on making growth capital and merger investments in corporations which already are, or aim to convert, leaders in the healthcare markets of the Middle East and North Africa (MENA), India and Turkey”

Offer the same or similar products for much cheaper, due to their private in house label that people have grown extremely fond of (Lutz, 2015)

A product that brings positive benefits to the customers should not set its price at a very low rate as it will devalue the product and lost credibility for the benefits that the product has promised. In addition, the price should not be over $ 20 as research has been conducted to show that very few customers are willing to pay above $20 for the product.

The main focus for competition is focused on the North Bend Premier Outlets. This particular competitor

* Products range from high quality and expensive brand name items to low quality low cost items to appeal to all the department store customers for both luxury item shoppers to budget shoppers.

Competitors: There are several competitors have been significantly in the marketplace nowlike Living Social, Big Sales. Grouping needs to the outstanding among the corporations is a challenging task. Groupon need to proactive in promotingtheir products and continue to be innovative in order to stay on the market.

When setting the final price, we must also consider other factors in our external environment. For example, economic conditions can have a strong impact on the results of our company’s pricing strategies. Economic factors such as inflation, boom or recession, and interest rates affect pricing decisions because they affect both the costs of producing a product and consumer perceptions of the product 's price and value.

Our competitors’ key strengths and weaknesses are that they, for the most part, have a cheaper price for the same amount of product, however, they don’t offer all of the same benefits that we do.

Price concerns the amount of money that customers must pay in order to purchase your products. There are a number of considerations in relation to price including price setting, discounting, credit and cash purchases as well as credit collection.

McKinsey & Co., 2004 write about the difficulty of pricing an item. The article explains that charging too much for an item is much easier to fix

The price of a product determines that products contributions to profit ability. The motivation in setting a high price is that it creates bigger margins , which in turns lead to increased profits with low prices the opposite happens margins are reduced and there is less contribution from the particular product .The factors which are related to the pricing decision are discussed below:

There are many ways in which the price of a product can be determined. The following are the foremost strategies that businesses are likely to use.

Pricing is one of the important elements of the markets mix, which generate a turnover for the organization and must reflect supply and demand relationship. Pricing a product too high or too low could mean a loss of sales

Yet pricing decisions can have important consequences for the marketing organization and the attention given by the marketer to pricing is just as important as the attention given to more recognizable marketing activities.  Some reasons pricing is important include:

Pricing is an important strategic issue because it is related to product positioning and furthermore, pricing affects other marketing mix elements such as product features, channel decisions, as well as promotion. Per Marketing Management, Chapter 8 in Review, “Pricing strategies don’t vary much from low, medium or high”.