If your business follows a low price strategy then the power of the price cannot be underestimated, but price is not something that your business can randomly arrive at. At IKEA price has to complement design, functionality and a wide choice. For IKEA the ability to deliver extremely good value for money compared to its competitors is the main reason for IKEA’s success.
There are reasons why the company is able to get this right. One is the courage to not be too greedy on the margin. in this regard, IKEA believes that reducing prices substantially , not just a little will bring rewards. [Read more…] about What IKEA Can Teach You About the Importance of Pricing