How does pricing affect the sales performance of organisations: A case of Maganjo Grain Millers Ltd.

Abstract

The purpose of this study was to establish the extent to which pricing affects sale performance of organizations in the case study of Maganjo Grain Millers located 10 miles a long Bombo Road. The problem identified was that despite organizations using various pricing strategies with a view to improve on their sales performance, their sales have remained low. The objectives of the study were; to examine the various pricing strategies employed by organizations to improve on their sales performance, to explore the role of discounts on the sales performance of organizations, to examine the effect of cost on the sales performance of organizations. In order to achieve the above objectives, the researcher obtained secondary sources of data like text books, journal articles and reports. The researcher used a simple random probability method to determine the population size because it limits the probability of choosing a biased sample. Findings revealed that to a larger extent pricing has a great effect on the sales performance of organizations. Consistent with the above findings, the following recommendations emerged; ➢ There is need for marketers to develop budgets for their pricing strategies as this will affect sales volume of an organization. ➢ According to this research, there is need for marketers to collect sufficient information regarding customer’s tastes and preferences as these feed into their pricing decisions hence customers levels of satisfaction and loyalty. In conclusion, customer feedback is solicited as to evaluate the effectiveness of the pricing strategies in organizations hence increasing their sales.