Sample Essay

Costco is at large, known for its low pricing strategy to retain its huge valuable customer base. The ability of price setting is on a higher side for this company since it has a comparatively lowered rate of products from other competitors. Due to the reduction in various products along with different promotional deals and free gift promotions, competitors of Costco are compelled to reduce the prices of products overall to avoid the circumstances of price wars in the market.

The impact goes further; when Costco still has the capacity to cater a large number of customers while others get short of promotional stuff. Lowered price rates are one of the most famous characteristics that Costco possesses. Wal-Mart faces a competition due to the major factor of pricing the products which is more or less identical with Costco (Costco Wholesale).

The membership part which is offered by Costco is an effective way of retaining valued customers. High levels of customer services and reliability keeps the customer entrusted within the company. The membership programs provide additional benefits which impacts the market gradually stealing customers that were once mingled with its competitors. Offering money back guarantees to members only publicizes the membership part as beneficial for those who haven’t been enrolled as prestigious members of Costco (Costco Wholesale).

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