Recommending a Pricing Strategy Ideas for Cartridge World’s Subscription Service.

Pricing Objectives. Added Market penetration through automatic sales Added Return on Investment with new subscription service Promotional Pricing will be used in the first year to gain more subscribers. More stable sales forecast due to just in time automatic delivery Feature adds value competitors don’t offer.

Industry Conditions Others could adopt this model to compete The buyers have less worries about ink replacement and gives them more power Possible copycat companies could enter the market to compete Manufacturer’s could begin offering a similar service. We would be the first to offer such a service in this industry

Psychological Aspects Small fee for service but gives the client a large gain by joining the club. Reduced overall cost due to the just in time delivery service. Percentage savings when joining the service Less to worry about for the client Perceived advantages to the customer include, reduced cost, less items in supply closet, less time spent on going to get replacements.

Pricing Strategy $39.99 annual fee for joining the subscription service 15% savings off first order when signed up for subscription service Shipping cost to and return covered by the company to add savings to the client We will use Promotional pricing for the first year to gain as many members as possible. No need for pricing changes as this is a added value service to our clients carrying its own value cost

Features and Benefits FeaturesBenefits Automatic refill serviceNever run out of ink when you need it most. Just in Time DeliveryNew ink cartridges will be delivered to your door just in time before you run out of current ones Return Shipping includedWe will send a return label and bag to send back the used cartridges ed remindersWe will send reminders to our customers a week before we send the replacements to be able to opt out if needed for that month.

References: Dhar, R. W. a. R. (2013). Marketing Management, VitalSource for Kaplan University, 4th Edition. [VitalSource Bookshelf version]. Retrieved from Friesner, T. (2014, May 8). Pricing Strategies - Marketing Teacher. Retrieved March 24, 2015, from