As we all know there are several factors which determine the pricing of a product. We all sometimes wonder how do many manufacturers and retailers keep giving us the low costs which in turn benefit our everyday lives. This week we will analyze the costs and competition factors of the pricing decision.
At IKEA, they are always trying to do things better, simpler, more efficient, and more cost effective. At IKEA all units play an important role in bringing us the everyday low prices that we enjoy. Here is an example of how IKEA continues to provide low costs.
The above is a piece from the Lack Series at IKEA and it is listed at the price of €5
As it has been stated before IKEA has spread across the globe. This continued growth allows IKEA to stay ahead of its competitors such as Wal-mart, Sears, Target, and Pier 1. When it comes to competition none can real compare to the IKEA brand, which has become globally known. The following link gives a glimpse of IKEA’s competition and how it effects its pricing decision.