In terms of fixed pricing, HP utilizes the promotional and bundling pricing strategies. Used as an incentive for consumers to buy more than one product, promotional pricing is used by many computer companies. HP is currently offering several discounted, free, and bundled products and services to appeal to consumers by using both the bundling and promotional price strategies. One example of HP utilizing these strategies is the New HP Pavilion dvgz laptop. Priced at $599.99, if you buy this laptop you receive other services as well as several discounts which include: a free memory upgrade to 3GB memory as well as a 320GB hard drive, $100 rebate, free color customization (stated as a $25 value), $30 off Microsoft Office Small Businesses 2007, $50 off on Blu-ray drive, and free shipping. The second product HP offers is the HP Pavilion dv4t series, also priced at $599.99. If you buy this PC you will also can obtain several discounts and services for free, valued at $436, which includes: $150 instant rebate, free double memory upgrade from 1GB to 3GB (stated at $100 value), free double hard drive upgrade from 160 GB to 320 GB (stated as a $90 value), 50% off High-Definition LED display (stated as a $30 value), $30 off Microsoft Office Small Businesses 2007, and free shipping. Lastly, another product that can be categorized into both the bundling and promotional pricing strategies is the HP Touchsmart tx2z Series. Priced at $899.99, HP offers a $419 discount which includes: $200 instant savings, free double memory upgrade from 2GB to 4GB (stated as a $100 value), free double hard drive upgrade from 160BG to 320GB (which is stated as a $90 value), $30 off Microsoft Office Small Businesses 2007, and $40 off on 320GB Pocket Media Drive.
All of these products and services that cater to the promotional and bundling pricing strategies appear on HP’s homepage in flash reels, have customer reviews and ratings, and if you buy these products within a certain amount of time, you receive 90 days with no payments. Furthermore, right above the flash reels of these HP products is a promotional pricing strategy that offers free shipping for an order of ink, toner, and paper delivered the next business day and all qualifying offers over $49.99.
“HP Introduces Next Generation of Utility Pricing for HP Superdome Servers; Offering Provides Always-available Capacity with Payments Based on Percentage of Each CPU’s Utilization.” Business Wire 13 Mar. 2003. Bnet. 14 Apr. 2009