Current Event Specific pricing Strategies

The specific pricing strategy I would like to discuss in this paper is downsizing. To me downsizing is a real pain for consumers and employees. The first time we heard and downsizing is one company started have cut back and lay off employees they called this downsizing. This is not going on for about 4 To 5 years now. Businesses feel this is a way to cut costs and reduce overhead. The question is does it reduce costs are on the other hand costs businesses and consumers more. Won a business downsizes its employees by laying them off that saving money is costing them money because now they have to pay unemployment and other benefits to these employees which they are not getting returned from such a product they can sell.

Seeing that we had have a Current events article product failure of light shows this article on there were singles is another method of downsizing. Even though Garber’s singles scene to be a good idea and pricing active from Garber perspective saying that the company would save manufacturing costs by using the same for its baby food. Thinking from a consumer’s perspective who would want to advertise that they cannot find a partner and dish and give the reason why( because the person was a big baby)

http://brandfailures.blogspot.com/2006/12/brand-extension-failure-gerber-singles.html

Just the word downsizing still makes people seeing red because many people lost their jobs because of downsizing. Even though they use the word smaller packaging, individual servings, or any other label they wish to attach it is still downsizing and that it can be as sensitive area for many years to come.

In addition, It is not costing the consumer or the manufacture any less, unfortunately they are paying more for less product. Why do I say this? Because everybody knows that if you buy in volume, you can get a better price. The smaller the package the more you pay for the contents. The reason for this is the manufacture has to retool their machinery and restructure their lines of distributions, advertising, and sometimes much more Just to get the product back in the marketplace.

My personal opinion is if they can cover the expense and the cost of the downsizing to smaller package. Why don’t they just reduce the price of the larger package and save the cost of retooling to downsize.