Electronic products have become a pleasure for consumers everywhere

The price of electronic products everywhere has become a pleasure for consumers. In different retail places, the discount strength is really not the same. In fact, discounting is indeed a sharp weapon used by businesses to compete. However, this is an exception to Apple. All Apple products seem to be immune to discounts, and the price of Apple products you see everywhere is the same, if not the same, that's big news. So how did this happen?

Macworld the analysis, by Sohu it translation:

It turns out that in order to keep prices unchanged among retailers, Apple has adopted a strategy called "Price maintenance".

Most goods are sold by distributors to retailers, with a "manufacturer's suggested retail price" (MSRP), but each retailer has the right to set its own selling price. For example, a retailer with a proposed retail price of 500 dollars paid a 250 dollar cost, marking its price at $350 and playing 70 percent. Other retailers may sell a little more expensive or cheaper. The reason for these price differentials is the huge gap between the "recommended retail price" and the dealer's value, which allows retailers to have room for price changes.

And the "recommended retail price" of Apple products and the price of goods is very small, the specific numbers are protected by the confidentiality agreement is not elegant, but there are probably only a few percentage points between the gap. It is hard for retailers to make a substantial profit while offering discounts.

The "Price maintenance" strategy has two effects: because of the thin margins, retailers will have little incentive to leave valuable advertising space to Apple's products. Large chains, on the other hand, are sometimes deliberately cutting back on thin-profit best-selling products, sacrificing some of the costs to attract passenger traffic, and thus boosting sales of higher-margin products such as accessories and wire.

The second step in Apple's retail strategy is to play a role: Apple will offer more money to retailers on a thin profit basis, but only if retailers advertise Apple products and sell them at Apple's "minimum advertising price". This strategy has made it more profitable for Apple retailers and has prevented Apple products from having different prices.

The policy has given Apple a lot of benefits. First, companies are making more profit from direct sales because they don't have to compete with their retailer's discounted prices.

Most importantly, the small price-cutting space makes it impossible for retailers to build a market position that rivals Apple. Big retailers such as Wal-Mart are best at using their market position to get lower prices from their producers, and the extent of that has almost affected the latter's survival.

iphone sales are different

In the US and Canada, in addition to being able to purchase mobile phones at retail prices, the vast majority of customers bundled up years's mobile communications Service at the time of purchase, paying 70 or more dollars a month. In such deals, telecoms operators subsidize retailers themselves, a more important source of profits for retailers. That is why many of the discount prices offered at the iphone stores are only available after the customer has implemented "store operator activation." This also explains why some retailers sometimes sell Apple handsets at a discount. Wal-Mart has caused a stir in the market by selling an iphone with a price of $199 for 127 dollars over the past holiday.

The disadvantages and benefits of this pricing strategy to consumers

Apple's pricing techniques are legal, and most of them are widely used in the industry. Apple has only made the most of these skills with the constant thirst of consumers for Apple products.

The impact of Apple's pricing strategy on consumers is hard to gauge. First of all, consumers lose the price competition mechanism that plays a positive role in the free market, you may buy a very good laptop, but it is much harder to buy an apple notebook that is below the market price.

But in other words, the chances of consumers buying a slightly less-than-good apple notebook are much lower. The huge profit margins and tight control over its distribution channels have made Apple a product of great quality with just a little more than the price of its rivals. So every penny the customer spends is worth the money in the long run.

In any case, Apple's strong grip has long been notorious, and the pricing strategy is a fascinating one. Aside from the other factors, the price of Apple products will remain stable, easing the pressure on shoppers: the only thing they need is to be patient and wait for the courier to appear at their doorstep.