DISTRIBUTOR PRICING IN VERY COMPETITIVE MARKETS

There is a high probability of fierce price competition in depressed markets where multiple suppliers are marketing relatively undifferentiated product offerings. In such circumstances effective pricing is a paramount necessity. This article discusses findings on pricing practices by industrial distributors operating in these types of conditions. It found substantial downward price flexibility, extensive discounting, and widespread price competition. Other results discussed relate to pricing objectives, methods, and influences. A range of recommendations is offered. © 1990.