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Pricing Strategy

             When a manufacturer sets pricing, many people do not understand the detailed research performed and the countless hours product pricing entails. The marketing manager usually compares their product to similar a competitor product line. In addition, many companies decision of pricing is suggested by the manufacturer. Often you will see a label or attached a sticker that states, "Manufacturer Suggested Retail Price". Other times manufacturers actually label the product with a price, such as Little Debbie cakes. When researching for this paper I decided to choose the wholesaler Costco, retailer Wal-Mart and the online venue Amazon.com. You will follow me on a crusade to find the lowest price on a video game, Enter the Matrix. .
             SEARCH BEGINS.
             Being the aficionado of good deals and discounts, I ventured to Amazon.com to locate my game. When you first log on, you will instantly be drawn to their "Free Shipping" promotion. As a consumer, I immediately began the checkout process with the idea that shipping was free and my final price would be is $49.99. The game listed at $49.99, the price I expected to pay. Boy was I wrong. On the checkout screen, in fine print, it displays a link, Why didn't I qualify for free shipping on my entire order? Nowhere does it state that I was not eligible instead it lists shipping and handling charges for this item at $4.49 and the promise to have it at your door in 3-7 business days. Along with the shipping charges, they wanted me to pay a sales tax of $4.80, bring my grand total to $59.28. Needless to say, I did not buy the game here.
             My next attempt to find a low price was at the world's largest retail chain, Wal-mart. Wal-mart lived up to its reputation of having lower prices. I found the game for $49.95, five cents less than on Amazon.com. With the addition of sales tax, my grand total would be, $54.15, a little more than $5 in savings over Amazon.

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