Gymboree Play Essay
The price for the classes is slightly different depending on locations. For example, the branch in Sherman Oaks offers a 12 week-class, which is 45 minutes per week, at $215 and a 24 week-class at $390. Gymboree Play & Music of Westside Pavilion provides 45 minute classes at $74 per month, 60 minute classes at $84 per month, and 120 minute classes at 145 per month. Gymboree play & music of Valencia offers 45 minute play and music classes at $69 per month, 60 minute art classes at $69 per month, 3 hour school skills program at $225, 2 days a week and at $315, 3 days a week.
They Gymboree play & music applies some psychological pricing techniques depending on different locations. For example, the Valencia branch uses odd-even pricing, which is a strategy that sets prices to end in certain number. The prices ending in odd numbers such as 5 or 9, offer one dollar lower than the next highest even price, assuming consumers to react better to those numbers. Also, Gymboree Play & Music of Westside Pavilion uses price listing, which is setting a few prices levels for a product line so that …show more content…
customers can chose one that meets their reference price they expect to pay for.
Each location of Gymboree play & music has its own events and promotions. Gymboree of Sherman Oaks offers customers to get a free trial class, $15 off from the price of the class, and no enrollment fees. In Westside Pavilion, new customers can receive free trial classes, $59 for the first month of classes and no enrollment fees. Similarly, Gymboree of Valencia offers new customers to receive a free trial class, first month for $49 with no enrollment fees. These could be examples of leader pricing. Leader pricing is a strategy setting some prices very low in order to get customers into retail stores and to sell large quantities of the products. (501) Gymboree plan & music tries to attract new customers by offering the lower price and to keep them continue to attend more and different classes.
Gymboree uses a one-price policy, which means offering the same price to all customers who purchase products essentially the same conditions and in the same quantities. (489) Gymboree offers 12 weeks-class at $215 or 24 weeks-class at $390 for everyone, so customers can’t negotiate about the price like a flexible-price policy, which is the other policy offering the same product and quantities to different customers at different prices.
Gymboree Play & Music of Sherman Oaks uses a quantity discounts technique to encourage customers to buy in larger quantities. Especially it uses noncumulative quantity discounts, which encourage larger orders but do not tie a buyer to the seller after that one purchase. Gymboree encourages customers to enroll a 24-weeks class rather than a 12-weeks class by reducing the price by $40.
There are a few factors that affect the sensitivity of the service’s pricing.
One is the price of competitors. If, for instance, romp n’ roll reduces the price for the classes, Gymboree play & Music current and/or potential customers will shift to romp n’ roll so that Gymboree would reduce the price. A government policy could affect the price. If instructors of the play programs are required to have a certain degree, the price is likely to go up because the company has to pay them more. Taxation is also the factors; increasing of tax would lead higher price of the service and decreasing of tax would no affect on the price or lower price of the service. Moreover, Economic conditions affect the sensitivity of the pricing. Since the play and learn programs are considered as luxuries not necessities, recession decreases the price and economic boom increase the sensitivity of the
price.
There are a few competitors in the kids play program market. The Little Gym offers classes for $76 per month with annual membership fee of $40. My Gym provides classes for $79 per month with one time membership fee of $75. Romp n’ roll offers classes about $70 per month with one time membership fee of $40. There is not a big difference between Gymboree and the others about the prices although Gymboree offer relatively lower prices.
William D. Perreault, Jr. Basic Marketing: A Marketing Strategy Planning Approach www.gymboree.com www.my-gym.com
They Gymboree play & music applies some psychological pricing techniques depending on different locations. For example, the Valencia branch uses odd-even pricing, which is a strategy that sets prices to end in certain number. The prices ending in odd numbers such as 5 or 9, offer one dollar lower than the next highest even price, assuming consumers to react better to those numbers. Also, Gymboree Play & Music of Westside Pavilion uses price listing, which is setting a few prices levels for a product line so that …show more content…
customers can chose one that meets their reference price they expect to pay for.
Each location of Gymboree play & music has its own events and promotions. Gymboree of Sherman Oaks offers customers to get a free trial class, $15 off from the price of the class, and no enrollment fees. In Westside Pavilion, new customers can receive free trial classes, $59 for the first month of classes and no enrollment fees. Similarly, Gymboree of Valencia offers new customers to receive a free trial class, first month for $49 with no enrollment fees. These could be examples of leader pricing. Leader pricing is a strategy setting some prices very low in order to get customers into retail stores and to sell large quantities of the products. (501) Gymboree plan & music tries to attract new customers by offering the lower price and to keep them continue to attend more and different classes.
Gymboree uses a one-price policy, which means offering the same price to all customers who purchase products essentially the same conditions and in the same quantities. (489) Gymboree offers 12 weeks-class at $215 or 24 weeks-class at $390 for everyone, so customers can’t negotiate about the price like a flexible-price policy, which is the other policy offering the same product and quantities to different customers at different prices.
Gymboree Play & Music of Sherman Oaks uses a quantity discounts technique to encourage customers to buy in larger quantities. Especially it uses noncumulative quantity discounts, which encourage larger orders but do not tie a buyer to the seller after that one purchase. Gymboree encourages customers to enroll a 24-weeks class rather than a 12-weeks class by reducing the price by $40.
There are a few factors that affect the sensitivity of the service’s pricing.
One is the price of competitors. If, for instance, romp n’ roll reduces the price for the classes, Gymboree play & Music current and/or potential customers will shift to romp n’ roll so that Gymboree would reduce the price. A government policy could affect the price. If instructors of the play programs are required to have a certain degree, the price is likely to go up because the company has to pay them more. Taxation is also the factors; increasing of tax would lead higher price of the service and decreasing of tax would no affect on the price or lower price of the service. Moreover, Economic conditions affect the sensitivity of the pricing. Since the play and learn programs are considered as luxuries not necessities, recession decreases the price and economic boom increase the sensitivity of the
price.
There are a few competitors in the kids play program market. The Little Gym offers classes for $76 per month with annual membership fee of $40. My Gym provides classes for $79 per month with one time membership fee of $75. Romp n’ roll offers classes about $70 per month with one time membership fee of $40. There is not a big difference between Gymboree and the others about the prices although Gymboree offer relatively lower prices.
William D. Perreault, Jr. Basic Marketing: A Marketing Strategy Planning Approach www.gymboree.com www.my-gym.com