Tenax Corporation Case Summary

The Tenax Corporation has some reasonable prices for their plastic fences. They might seem to be a little expensive considering you are buying a plastic fence and not a traditional metal fence which most everyone is used to. Their prices range from as low as $14.99 a roll for simple home and garden fence that is like mesh fence (Ace Hardware, 2016). Then they have the median price of about $50 which is like the heavy duty safety fences (Ace Hardware, 2016). Then they have the really expensive product which cost about $130 which is like there tall deer fences that they sell (Ace Hardware, 2016). All of these fences can be bought from Ace Hardware is which where I found these prices from. So if you were buying this you might think it was a little expensive to buy a plastic fence that you think will not last as long as the tradition metal fences would. The only thing is that Tenax has facts to show the consumers why the plastic fence might cost a little more but will still last a long time. This company’s prices their product by being a top of line product that only uses …show more content…
The premium pricing strategy is where they set their prices higher then their competitors so they have a premium brand of plastic fence. They have their prices higher for one because they are using raw materials which cost more (Tenax, 2016). Since they are using raw material which makes the fences stronger from what their lab reports have back to say makes their brand more of a premium brand. The customer is paying more for a better product in other words. This makes the Tenax brand look better because of how much research they put into the product to make it more of a premium brand which means you price it higher because of that. Another reason why it is premium is because there are a lot of overseas making the product for a lot cheaper and selling for a lot cheaper than Tenax (Tenax,