1. I think that Evo’s pricing strategy meets most of the pricing objectives. First, Evo can maximize profit off the latest and greatest equipment. This is because customers are willing to pay a premium for products that have the latest technology in them. Also, they try to make their prices comparable with the industry. This is because it is extremely easy to compare prices online, but at the end of the day, Evo is focused on making sure their prices are valuable for the customer. They have a 5% price match so they will match any price that is lower than theirs and sell it to the customer for 5% less than their advertised price. They use value pricing by being one of the largest sellers of used ski and snowboard equipment. Evo is able to sell to people who may not be willing to spend the money that top of the line equipment costs. Evo does not try to participate in prestige pricing. They have products that are expensive and only a certain number of people can buy them, but they are not actively trying sell because certain products on the basis that they are prestigious.
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I do not think that the 8,000 square foot brick-and-mortar store in Seattle distracts from Eco’s pricing strategy. Although they carry a lot of their used inventory online, I think it is beneficial to have a place where customers can come see products to figure out what they would like. Especially with a sport such as skiing or snowboarding, it is beneficial to make sure that you like how a product feels before making a purchase.
3. Customary pricing effects Evo because customers expect the top of the line equipment to cost a certain price. No matter where the customer buys the equipment from, it will most likely be selling at the same price. This is because the top of the line products have a long history of being sold at a premium and customers who want those products expect to pay that