pricing strategy for BookMe
A pricing strategy for BookMe, a bookstore in Dubai, is using similar prices with competitors in the case of business-to-business (B2B) selling. Copying competitor pricing limits for the same class and type of books avoid the comparison of quality based on the cost marked at the bookstore. However, BookMe ought to assess the ability of competitors to mass-produce their books, attracting a lower marginal cost.
A second pricing strategy of maximizing sales is the low cost marking of books. For instance, BookMe could mark books at $9.85 and achieve a purchase of 3000 units. Alternatively, the store could mark the price at $18.85 and make 2000 unit sales (Liu, 2018). As such, BookMe has to adopt a pricing strategy that either prioritizes sales, revenues, or marginal profits in a local market dominated by low production competitors.
Offering promotional products such as pens, coffee mugs, or notebooks alongside books at the BookMe shifts the comparison of books based on discounts, rather than pricing by competitors. Moreover, individual books are judged based on promotional attributes of discounts rather than the quality and review of the book in academic circles and within retail outlets within Dubai Mall (Liu, 2018). As such, BookMe ought to offer branded promotional items, including pens and bookmarkers, hence increasing brand visibility.
Reducing the price of books correlate with sourcing books from the original publisher, hence having the capacity to cater for distribution fees in a competitive market. Lower distribution and fixed costs enable low cost marking in a retail market dominated by B2B buyers and sellers (Liu, 2018). Moreover, the psychological marking of prices at $9.85 improves sales and consumer traffic but at reduced total revenues, while the tactical pricing of $18.85 could target specific market segments and retail outlets.