Apply It 15.2: Price

  • Understand what pricing means to the customer
  • Understand how product pricing can help businesses achieve goals
  • Understand how businesses use discounts and allowances

Price Strategy and Market Positioning

This Apply It continues using the Costco case study video from earlier in this module. The video is included below in case you want to refresh your memory about specific details, but if you have already watched it, you don’t need to watch it again.

Costco has a unique approach to pricing where they maintain strict margins for both national brands and Kirkland products.

You can view the transcript for “Why Costco Went All in on Kirkland — and How It Paid Off” here (opens in new window).

Analyze how Costco’s strict markup limits (14% for national brands, 15% for Kirkland) impact its business model and relationships with suppliers.