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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 961 |
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Customers know that due to the company’s huge economies of scale, the prices are low. However, pricing strategies are very important to ensure customers maximise their buying power when inside the supermarket. Loss leader pricing is one of many that Sainsbury’s adopt, this is evident with their economy brand range...
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These products are sold usually at below cost price, they are there to get customers to buy other products as well. Geographical pricing is also present at Sainsbury’s, London based outlets are more expensive than more Northern based outlets. As average income is higher in London than in Northern cities, Sainsbury’s can get away with charging higher prices in London...
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