Gymboree Play Essay

The price for the classes is slightly different depending on locations. For example, the branch in Sherman Oaks offers a 12 week-class, which is 45 minutes per week, at $215 and a 24 week-class at $390. Gymboree Play & Music of Westside Pavilion provides 45 minute classes at $74 per month, 60 minute classes at $84 per month, and 120 minute classes at 145 per month. Gymboree play & music of Valencia offers 45 minute play and music classes at $69 per month, 60 minute art classes at $69 per month, 3 hour school skills program at $225, 2 days a week and at $315, 3 days a week.
They Gymboree play & music applies some psychological pricing techniques depending on different locations. For example, the Valencia branch uses odd-even pricing, which is a strategy that sets prices to end in certain number. The prices ending in odd numbers such as 5 or 9, offer one dollar lower than the next highest even price, assuming consumers to react better to those numbers. Also, Gymboree Play & Music of Westside Pavilion uses price listing, which is setting a few prices levels for a product line so that
One is the price of competitors. If, for instance, romp n’ roll reduces the price for the classes, Gymboree play & Music current and/or potential customers will shift to romp n’ roll so that Gymboree would reduce the price. A government policy could affect the price. If instructors of the play programs are required to have a certain degree, the price is likely to go up because the company has to pay them more. Taxation is also the factors; increasing of tax would lead higher price of the service and decreasing of tax would no affect on the price or lower price of the service. Moreover, Economic conditions affect the sensitivity of the pricing. Since the play and learn programs are considered as luxuries not necessities, recession decreases the price and economic boom increase the sensitivity of the