The Pricing Strategy Was to Meet the Low-Priced Imports

The Jumbo-Koter product line was set up with a different price point for each of the different products in the line. The pricing strategy was to hit the price points of the low-priced imported competition. Wooster Brush management did not feel that the company had to match competitors prices exactly because Jumbo-Koter was a different type of product with unique advantages, such as easier-turning rollers. The Jumbo-Koter rollers were also longer and larger in diameter. Management felt that if Jumbo-Koters prices were within a few pennies of those of the low-priced imports, it would have the advantage. Jumbo-Koter mini-rollers were launched at lower prices than domestic products, including other Wooster Brush mini-rollers.

When the program was launched, a 10 percent introductory allowance was offered on the entire line. The line was also launched with incentives to use a display with the Jumbo-Koter line. These discounts were to be offered at pro shows and at distributor shows. A consumer discount was also offered upon introduction of the program. A premium pack that included a frame and six roller covers in a box was to be sold during the product launch. It was to be put on a counter or on the rack. The consumer bought the six covers and got the frame free. Getting the frame into customers hands without their having to make a perceived investment was felt to be crucial, because they were likely to hang onto that frame for the next five years and keep on buying replacement covers.

A pricing contingency plan was set up in case the competition decided to lower its prices in response to this program. Wooster Brush management decided that it would not reduce the Jumbo-Koter prices if that were to happen. Management felt that by the time the competition was able to implement a price reduction, Wooster Brush would have established the Jumbo-Koter line as a viable one in the market. It felt that most customers would continue to purchase Jumbo-Koter products at the initially established price.