One of the most significant pricing strategies used by Saie is penetration pricing. Being a newly found company and one that is continuously launching beauty products, the company has had to strategically lower its prices to penetrate the highly competitive beauty and fashion industry effectively. The prices are slightly lower than those of their competitors, for example, L'Oréal. Even in cases where the company used a combination of pricing strategies such as the one mentioned above and premium pricing, it uses different strategies to ensure market penetration. An example is the free shipping for products priced above $30 ("Saie | Clean Makeup You'll Love", 2021) . It has introduced a better-for-you mailer concept where product packaging is made recyclable. While this is meant to reduce waste, it is also a form of marketing and an approach that reduces resources that go into boxing (Rao, 2021) . Coupled with the above, market launch pricing is also being used by the company. It is at a stage where it is releasing new products that are meant to compete with those of the competitors. This is intended to boost market penetration and reinforce marketing efforts.
Saie also uses the wholesale and retail pricing strategy to serve its diverse customers. Customers who buy particular products in bulk are given discounted prices compared to those who buy one product. This strategy aims to accommodate customers who want products to resale and those who aim to buy them for personal use.
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It would also be right to say that Saie uses geographical pricing. Although Saie products are shipped within the US, and the company's operations have not expanded beyond the US borders, supply and demand within the US influence the pricing of products, especially the newly launched ones. The company utilizes this strategy because of environmental dynamics in the US that influence businesses. Examples of such elements include taxes, tariffs, shipping costs and costs associated with rent.
References
Rao, P. (2021). Inside Saie's product mailer strategy for new launches | Glossy. Retrieved 6 March 2021, from https://www.glossy.co/beauty/inside-saies-product-mailer-strategy-for-new-launches/
Saie | Clean Makeup You'll Love. (2021). Retrieved 6 March 2021, from https://saiehello.com/
