How Sam Walton Conquered America
Sam Walton, Founder of Wal-Mart stores, once attributed his success to his pricing strategy. He said that by pricing an item in his store for $1.00, he could sell three times more of it than by pricing it at $1.20. He made only half the profit per item but because he was selling three items as many, the overall profit was much greater.
Probably, you have already heard that a cheap or reasonable price could easily attract customers. This is true but NOT COMPLETELY TRUE. The complete truth is that you can only be successful with a low pricing strategy, if you product is as good as that of your competitors.
Remember, Walton was a retailer. He sold good quality products. These were the same products that his competitors sold at their stores. The only difference was his price policy. Before lowering your price, make sure the product is good enough.
