Showing posts with label Captive Pricing. Show all posts
Showing posts with label Captive Pricing. Show all posts

Sunday, December 13, 2009

THE REALITY OF THE LOW PRICED PRODUCTS


Some companies for example HP uses captive pricing. It means that when HP will sell its products, they will be priced low but the accessories or the supplies to use the product will be so high in order to get the profit of the product out of the supplies. This is a trick to capture the market with low prices.

I went to Hafeez Center and wanted to get a coloured printer. I went to the HP dealer and asked for the printer. Because of low budget i asked the gentleman for the cheapest model. He told me that its for Rs. 2400.
I was stunned at such a cheap price for a coloured printer. I bought it and used until its colour catridge was empty. I went to the same dealer and asked for the catridge of the printer, His words were, "O CHADDO SIR JEE, CATRIDGE JO LENI HAI, AAP PRINTER HI NEYA LE LO KIUN KE USKI CATRIDGE HI Rs. 1900 KI HAI."

I was very amazed at this thing and confirmed this from other dealers too but the rate was the same.
So when I was reading the Chapter 11 and reading Captive Pricing, this thought came into my mind and thought to share this with all.