What is the connection between the price strategy and the channel distribution?

The relationship between the price strategy and the channel distribution can be drawn from the fact that the right pricing strategy is one of the business strategies used by organizations and effective control or monitoring of distribution channels helps to ensure that product prices remain within the price limits of set organizations. The strategies of pricing and channel distribution are also associated in the sense that careful monitoring of distribution channels also helps to ensure that prices do not aim with each other, because different distributors could be tempted at their own additional prices. Another combination is that a balanced external distribution channel can help a company that lacks resources for internally distributing its products that would be involved in direct sales and other considerations.

One of the connections between the price strategy and the distribution of channels JE derived from effect that has a lack of control of prices on the manufacturer or importer of the product. Companies usually use prices as one of their methods of effective strategization. Any deviation from the specified price range shall undermine the efforts of the company to carry out a predetermined price. For example, a candle manufacturer could set a maximum price for a box of 50 individual candles at a specified price that takes into account a contribution to the profits of distributors and retailers. When distributors and retailers indicate other amounts exceeding the maximum price set by the candle manufacturer, it will defeat the company's goal, so it is necessary for Dalana a place to limit these events.

Price strategies and channel distribution are also connected by the fact that the availability of good distribution channels means that the company will not have to spend any money on setting up its own internal distribution channel. The establishment of a private distribution channel will include hiring, training and paying remunerationThe sales team, providing logistics to the sales team to allow them to effectively fulfill their duties and establishment of stores for further distribution of the product. If the company does not have to do this, the money that would be stored will allow it to further reduce the price of the product.