Home » Cost and Economics in Pricing Strategy » The leading brand of scissors decides to take advantage of back to school sales by increasing the manufacturing price they ask from its retailers, including a large chain of office supply retail stores. How could this decision impact the balance of power?

The leading brand of scissors decides to take advantage of back to school sales by increasing the manufacturing price they ask from its retailers, including a large chain of office supply retail stores. How could this decision impact the balance of power?

The leading brand manufacturer has shown it has the most power by making this move.

Consumers will have less options when shopping at the retailer.

Manufacturers of follower and laggard brands suddenly have more power.

The office supply retailer can react by using discount and display tactics that will negatively impact the manufacturer.

Retailers have many options to promote follower and laggard brands, thus increasing their own margins, if they are squeezed too much on national leading brand prices.

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