Apple has a unique method of pricing its products which has resulted in the consistent prices that can be found for its must have gadgets at all different retailers. Famous gadgets like the iPads, iPhones, and iPods are rarely ever discounted with the Cupertino giant maintaining a strong hold on the retail operations.
A recent article published on MacWorld has shed light on how Apple has successfully implemented its unique strategy while keeping the retailers on board. According to the article most other brands have a “Manufacturer Suggested Retail Price” although retailers are free to set their own prices.
These retailers also gain huge discounts for buying at wholesale rates which results in such different prices for the same product across stores. Apple on the other hand gives only a tiny discount with the actual numbers fully confidential between the retailer and the company.
The small gap in wholesale and retail prices does not allow for big discounts hence Apple products are priced similarly across retailers while a tiny discount is given for purchases from official Apple run stores. Apple also maintains power over retailers by supplementing discounts with cash incentives but only when the retailer does what the company wants.
This keeps retailers from getting too powerful while also keeping prices high benefitting Apple the most. Retailers will not go away from Apple thanks to its huge brand name. Although other companies have tried similar models no one does it better than Apple which can be seen from its dominance of the technology sector.
Source: MacWorld
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