What is the pricing strategy of Sam's Club? This might include profit orientation, sales orientation, or status quo orientation.

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thanatassa eNotes educator| Certified Educator

According to Forbes Magazine, Sam's Club has seen greater per store growth in sales than its parent Walmart. This growth is a trend related the the increasing popularity of the warehouse clubs, which are designed on a model that enables the lowest possible pricing.

The main strategy is a sales orientation that uses low pricing to maximize sales. The membership model and incentives towards bulk buying, in which customers save more by buying more, drive two important aspects of this profitability, customer loyalty and increased sales. An especially interesting element in the success of warehouse clubs is a strategy focusing on increasing sales per customer, something that raises profitability by lowering marketing and customer service costs. The size of Walmart, the parent of Sam's Club, allows for economies of scale that make this low-price model successful. 

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