The Treo Has a Very Complex Pricing Strategy


Handsprings pricing strategy for the Treo is to sell the devices to the wireless phone carriers at a wholesale price that will cover all of the companys costs and generate a sufficient profit. The carriers set the retail prices, which consist of a base price coupled with subsidies for users who sign up for the carriers service. In many cases, the carriers will use discounts to further reduce the prices and entice new customers to sign up with them. Retailers may also offer discounts on the Treo. In this case, the customer may get a discount from a retailer or a wireless carriers store plus a subsidy for signing up for wireless service. A customer may also buy direct from Handsprings web site and then get a subsidy from a carrier for signing up for service.

This combination of selling direct from a web site, through carriers stores, and through traditional retailers can be quite complicated. When this is coupled with a variety of subsidies, the price a customer pays for a Treo can vary considerably depending on how the device is purchased. The carrier provides a subsidy to people who get that carrier a subscriber. If that is the retailer, the retailer gets the subsidy. If a customer buys a Treo from Handsprings web site, then Handspring gets the subsidy. If a user who is already a customer of the carrier buys the product, in most cases that customer doesnt get a subsidy. Because of this, in todays market a customer may pay anywhere from $499 to $299 for a Treo.




Powerhouse Marketing Plans(c) 14 Outstanding Real-Life Plans and What You Can Learn from Them to Supercharge [... ]aigns
Powerhouse Marketing Plans(c) 14 Outstanding Real-Life Plans and What You Can Learn from Them to Supercharge [... ]aigns
ISBN: 735621675
EAN: N/A
Year: 2006
Pages: 172

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