Walmart - Looking Back

Pricing Strategy

Wal-Mart’s pricing strategy is based upon the foundation that they can give customers access to the items they need every day at the most affordable prices. In doing so, they help by removing unnecessary costs and managing the business better. The current economy is facing a lot of challenges which now makes everyone focused on everything they buy. The company is working harder to manage costs and the impact of inflation across all Wal-Mart stores. A recent study on comparative packaged grocery prices actually showed that Americans shopping at supermarkets could have saved more than $21 billion last year by purchasing the same categories of food at Wal-Mart. This shows that Wal-Mart strives to provide their shoppers with unbeatable values every day, and that is how their pricing strategy works.

Cost-based pricing

Wal-Mart’s prices are lower every day and to make profit from providing lower prices for their customers, Wal-Mart cuts there cost when buying from suppliers buying. They get great wholesale prices because they buy a lot of everything their selling and spend a lot of time getting the lowest price from the suppliers. They save money from cutting the intermediary out, they have their own supply trucks to get the supplies, which is why they can price their products lower.

Competitor-based pricing

Wal-Mart prices are lower than their competitors like Costco and target. Wal-Mart is famous for the rollback and their everyday low prices and if the competitor’s prices are lower, they will match the price of an item shown in a competitor's ad, which increase store loyally to customers and more long-term customers to keep profit high.

Demand-based pricing

Wal-Mart's demand for their products are huge but this is because of the low prices they have every