Why do some stores charge more for the same item?

Why do some stores charge more for the same item?

Differing cost structure. Each business is set up a little bit differently. They have different operating costs, overhead costs, as well as fulfillment and delivery. Because of the differences in cost structure, retailers with more inefficiencies may charge more than efficient retailers for the same product.

Why do prices vary from store to store?

The short answer is that prices are determined by the retailer. The long answer is that a legal agreement is made between retailers and manufacturers to determine the minimum or maximum price for a product. Retailers can determine the price of the product they sell, but only within the guidelines the manufacturer sets.

Why do prices change on location?

The difference in price might be based on the shipping cost, the taxes each location charges, or the amount people in the location are willing to pay. Prices are also varied based on demand, such as a product that is competing with many rivals in a market versus a product that is exclusive to a market.

Why do prices differ from Walmart to Walmart?

Why is there a price difference between Walmart stores? Prices may vary from store to store because each store is required to manage its own inventory. Therefore, a manager may lower a price to clear out an overstock item, to reward customers with an in-store sale, or to compete with local merchants.

Can I charge different prices for the same product?

Price discrimination is a selling strategy that charges customers different prices for the same product or service based on what the seller thinks they can get the customer to agree to. In pure price discrimination, the seller charges each customer the maximum price they will pay.

What are the reasons for differences in price?

They vary due to taxes, cost structures, local market needs, currency exchange rates, tariffs, differences in competitive situations and a myriad of other reasons. They even vary because this is the way it has always been.

Is it legal to sell the same product at different prices?

Charging different prices to different customers is generally legal. The practice could be illegal, however, if the reason for the difference were reliance on a “suspect category” – race, religion, national origin, gender, or the like. The practice could also be legal if it violates antitrust or price-fixing laws.

Does the location of a store affect the price of goods?

Given the ease these days of comparing prices online, it seems surprising that some retailers are still selling the same products at prices that vary with store location. But that is nonetheless still the case.

Is selling a product or service at two or more prices where the difference in prices is not based on differences in costs?

Segmented pricing is used when a company sells a product at two or more prices even though the difference is not based on cost.

Why do prices fluctuate on Walmart?

What it comes down to, essentially, is the cost of shipping and packaging certain items for delivery to customers’ doors. “It simply costs less to sell some items in stores,” a Walmart spokesperson told The Pennyhoarder. “We always work to offer the best price online relative to other sites.”

Are online prices the same as in-store?

Wrong. A comparison of online and physical store prices by Adobe, provided exclusively to USA TODAY, reveals that what shoppers pay online or in-store generally track each other closely but have diverged noticeably in some categories. And if you where to shop, that can add up to big savings.

Why might customers be charged different prices for the same product even if the cost of the product is the same for all customers?

Price discrimination charges customers different prices for the same products based on a bias toward groups of people with certain characteristics. The markets cannot overlap so that consumers who purchase at a lower price in the elastic sub-market could resell at a higher price in the inelastic sub-market.

How much does the same item cost at two different stores?

Keen-eyed shoppers know the exact same item can cost anywhere from a few cents to a few dollars more depending on the store you choose. Prices will be different at two stores located right next door to one another. Why?

Why do stores with the same name have different prices?

That doesn’t really explain why you can find two stores with the exact same name, located in the same zip code selling the same product for different prices. One of those stores could be right across the street from a competitor. The owner of that store might cut the cost of certain items to lure them away from his rival across the street.

How do retailers determine the price of the products they sell?

Retailers can determine the price of the product they sell, but only within the guidelines the manufacturer sets. This agreement, made between both parties, must meet the expectations of both sides and ensure accountability.

Why are shoes cheaper online than in store?

The online price, due to decreased operational costs, is often lower than the price at a brick-and-mortar store. If people decided to solely (pun intended) purchase a much cheaper pair online, then it would put the retailer at a huge disadvantage and potentially take the company out of the competitive landscape.