Kohler's approach is business to consumer, from the manufacturer which is Kohler, then sells the product to a retailer who in turn sells it to their customers. We decided to take a selective rather than intensive distribution approach. For our target goal, by working with fewer outlets we can build better relationships with channel managers and Kohler can expect a better than average sales effort. We will talk to our channel managers and discuss the profitability and exclusivity they would have with Kohler Hygieia. By selling more, they will create a more profitable venture between the retailer and the manufacturer. If these retailers purchased from Kohler, they would earn a margin of at least 22% per product sold. We will evaluate based on performance in achieving short-term goals and the channel member's efforts to increase product sales. Looking at the pricing strategy of our competitors, they offer a similar pricing structure compared to Kohler. Prices can range from $150 to $1,200 and depending on the segment they focus on, such as residential or commercial. Considering most price offerings, Hygieia undercuts most of the market by being right in the middle of the pricing structure while offering better features at an affordable price
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