Reducing the Importance of Price in Consumer Decision Making: Wholesale Suppliers

For many wholesale suppliers, the selling price of a product and the list price have very little to do with each other. Product list price discounting and the reduction of profit margins that this causes is creating frustration. This frustration is based on the pressure consumers exert on wholesalers to maintain or reduce product prices. This paper will demonstrate and explain programs to be implemented to reduce this frustration. These programs are examples of value-added-services. The effects of the programs last longer than simply adjusting selling price levels. The intention is to reduce price as a consumer consideration. It is easier to do this than to change the way customers and consumers are becoming. An understanding of the wholesaler marketplace is necessary in order to know which type of programs to use. There are different types of customers and competitors for the wholesaler. An evaluation of these participants will assist in this process. This paper concludes that emphasis on price can be reduced through a cognitive group decision by the wholesaler. Everyone employed by the wholesaler must participate in order to raise the level of service provided to the customers. Without full participation, the programs will not work. Their benefits will be shown to be well worth the effort