Smarter Pricing: How to capture more value in your market

7. Competing with value players – hit back with benefits

case study 7.1: The value player challenge: cut-price coffins at Costco There is no limit to the markets that discounters are entering. The Economist magazine reported that on 16 August 2004, the warehouse-style retailer Costco launched a range of discounted funeral items. Costco’s coffins or caskets come in various styles. The ‘In God’s Care’ casket is in 18-gauge steel and is painted Neapolitan blue with silver shading. Normal delivery is within three working days, but the website (www.costco.com) warns that Acts of God can delay delivery beyond these parameters. The real surprise is the price. From a traditional funeral services firm, this coffin would cost $3,500–$5,000. From Costco ...