Pricing Analysis

Product Details:

Hewlett Packard psc 2110 - Multifunction (color) is multifunctional, color inject printer. It is a combination of printer, scanner, copier and fax machine.

Location/Source Price (including delivery if applicable) Comments

Staples $249.99 $50 mail-in rebate available

Future Shop $249.99 $50 mail-in rebate available

London Drugs $299.99 $50 mail-in rebate available

Amazon.com $239.99 (shipping included) $50 mail-in rebate available

Discussion/Observations:

Obviously, Hewlett Packard (HP) currently has a promotional mail-in rebate of $50 with all their distributors.

There are numerous distributors for HP products and they all have one thing in common. Primarily, their pricing is based on “psychological pricing” (Kotler, Cunningham, and Tuner, 2001, p.458). The noticeable example here is London Drugs whose list price of $299.99 for the HP printer gives customers the impression that they are buying a printer for less than $300, while it is actually only one cent cheaper.

As shown in the above table, Staples and Future Shop have the same pricing. This is logical as they are very close competitors. However, Staples has posted the “we will not be undersold” slogan in its stores, suggesting that they provide the lowest prices, although they have the same price as Future Shop.

London Drugs has the highest pricing for HP multifunctional printer - $50 more than other retailers. One of the reasons behind this is that computers and computer accessories are not the primary business for London Drugs, while Staples and Future Shop have a core business in