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Pricing Analysis Jean Carter MKT551 Marketing Management August 07, 2003 Price is a major element used to support a product’s quality positioning. CD’s can be brought for different prices at different points-of-purchase locations. This paper will discuss three points-of-purchase, online retail chain, and single-line specialty store. The rationale for pricing the CD’s will be discussed. The three locations are Cheap-CDs, Best Buy and Sam Goody. The price of the CD “Dance With my Father” by Luther Vandross revealed at all three locations. Research was done to rationale the price decisions of three points-of-purchase locations. The first one is Cheap-CDs.com an online business. Cheap-CDs have low rent, staff and inventory cost. Cheap-CDs.com can offer low price due to a large daily volume and low monthly overhead. Unlike other online competition, Cheap-CDs use vendors that supply cheap CDs music at low prices and do there own packaging to customers. Cheap-CDs do not have fancy offices or a lot of executives being paid the big bucks. Cheap-CDs offer all the music at cost. Mailing charges are at cost and $1.50 or less is added for shipping and handling fees.
Approximate Word count = 726
Approximate Pages = 2.9
(250 words per page double spaced)
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