Student Questions - Pricing Strategy from Anonymous: MarketingProfs Question 33636

Topic: Student Questions

Pricing Strategy

Posted by Anonymous on 5/14/2010 at 6:54 AM ET 25 Points

In a clothing business selling men and women apparels, what are the different pricing strategies that can be applied to gain customer interests?

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Posted by CarolBlaha on 5/14/2010 at 7:28 AM Accepted

First who is your target group or niche? The demographics of your group should tell you what price points you need to be at.

For example-- Men's Warehouse also owns K&G - two different price points targetting two different customers. Same as GAP and Old Navy.

Stores target professionals, clubbers, people with lower income, higher incomes, people who care and don't care about style.

Know your customer and research their lifestyle and price points.
Posted by Peter (henna gaijin) on 5/14/2010 at 11:52 AM Accepted

Here are some links to check out with some ideas:

https://www.scribd.com/doc/2866377/Skimming-pricing-strategies

https://ezinearticles.com/?Retail-Pricing-Strategy---Wholesale-Clothing-Sup...

https://www.google.com/url?sa=t&source=web&ct=res&cd=2&ved=...
Posted on 5/14/2010 at 7:17 PM Accepted

Who are your customers? What do you know about them? Where else do they shop? Where do they live? What are the most important criteria in deciding where to shop and what to buy? Do you have demographic and psychographic information about your best customers?

Pricing strategy is based in an in-depth knowledge of your target audience, not in the products you're selling. If you provide added value for your customers, your pricing strategy will be different than if you want to be known as the bargain bazaar.