Pricing Strategies- Walmart

Have you ever wondered through a Walmart before? Ever wonder why and how the company does so well yet keeps their prices so low? Recently I was watching a program on Walmart on MSNBC and read an article from the Business Insider regarding Walmart's pricing strategy. Whenever I walk through a Walmart I see big signs 8.77 or 14.38 and I wonder why are the prices not like everyone else? 8.99 or 14.99? Well, that is where Walmart grabs the consumers attention in their prices. Their motto speaks for itself "Everyday low prices." That is what the company strives for and by cutting prices they help consumers save a few extra cents and make them appreciate Walmart's low price strategy. In the Business Insider article it said that due to the current recession many consumers have had no choice but to cut back on their spending habits and save a little extra cash wherever they can. By keeping prices low, low, low Walmart sales are up and more and more consumers have loyalty to the big box chain. "Walmart taught us all in the '80s, when you get a steady sales process, What happens? You can manage the business better. Walmart knows that by pricing lower they will get more consumers. Wouldn't you rather buy a television for $144.44 then $199.99 I know that I would. Any chance I get to save money I know I cease that opportunity. I feel as though by Walmart branding themselves as a place to shop with everyday low prices is a brilliant marketing tactic and it is truly what makes them so successful, and that is certainly what distinguishes them from their competitors. 

How do you feel about Walmart's pricing strategy? Do you think that it is clever? 

Article Source: http://www.businessinsider.com/why-walmart-can-pull-off-everyday-low-prices-while-everyone-else-keeps-failing-2012-9