Pricing

Strategy for
“Stitch Fix”
Presented By:

Group 3

Neil Majumder 20PGP131

Mayank Waiker 20PGP237
Vikas Joshi 20PGP247
Rohan Sundar More 20PGP259
Stanzen Chosdan 20PGP252
 Introduction:
We all need to buy cloths, and we have preferably two choices : the bricks-and-mortar
stores and the online way.

Bricks-and-Mortars shopping Online Shopping

✓ Pros: ✓ Pros:
○ See, touch and feel the product ○ Large variety of choices on low
with the option to try. price
✓ Cons: ○ Customer convinience
○ Time consuming ✓ Cons:
○ Concerns related to trial rooms ○ Time consuming
○ Limited choices with much ○ Unble to touch or feel the
higher prices product
○ No option to try the product

The entire process of shopping can be very overwhelming. So, what does the customer do,
what options do they have?

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STICH FIX: Reinventing the E-Commerce Retail Experience:
“Founded by Katrina Lake in 2011, Stich Fix is a San Francisco based company providing personal
styling services. By combining personalization and a sense of surprise, Stich Fix set itself out from its
competitors in a very distinct and different way”

Stitch Fix eliminates the need to visit a store or spend hours exploring hundreds
of pages on the internet, while simultaneously providing them with the expertise
of their stylists with the simple process given below.

Each client offers

Once they've They can also set up
information such as
The customer completed the automatic deliveries
size, fit, price range,
that can be altered or
spends 10 minutes how often they dress profile, they'll be
cancelled at any time,
filling out his or her for special occasions, able to schedule ranging from every
style profile.  and what part of their deliveries for their two weeks to once a
body they want to order.  quarter. 
flaunt or cover. 

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Business Model

Stitch Fix business model is simple: 

They send customers clothing and
accessories they think customers will
like; the customer can keep the items
they want and send the others back.

• Styling Fee
• Subscription Fee
Revenue • Selling Clothes
Streams: • Private Label

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5
Current Pricing Strategy
The pricing strategy currently in effect by Stich fix is a collaboration of Subscription
based pricing and Service based pricing. The pricing strategy revolves around the

business model they are having at Stitch Fix.  

• Service based pricing model

• Subscription based pricing 

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Suggested Strategy
We are suggesting a pricing strategy on top of the existing pricing strategy is a mix of
psychological and discount pricing.
 We are going to offer a price discount ranging from 0 to 25% and we will offer the
highest discount to the product having the lowest probability of customer keeping with
themselves.
 On the other hand charging a higher price for the product which are already attractive
for the customer which will also vary from 0 to 25%. 
 Increasing the attractiveness of the product by decreasing the cost.
 Charging a little higher for the for the product having highest probability of retaining
at the consumers end.
 Averaging out the total price of the package by changing the percentages.
 Increases the chances of keeping all the items hence increasing profitability.

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 Positive

Negative
Outcome(s)
Outcome(s)

1
En
Ra han

1
te c i
A n g
th
C l te r eR
om in et
e
2
pa g t nt
ny he io
Po Re n
sit Su inf
i on rp orc

2
in ri s i n
g e’ g
Pr of ‘E
i le
ce m
3

Es en
ca to
la St f
tio oc
n k
(W Cl
ar
ea
s)
ra
nc
e

3
4

M Pr
ai Co ice
nt m Co
ai pe m
ni
n g
tit pe
or tit
M s iv
5

.S en
.P Pe
es
sw
Se net .r.
gm rat t
Assessing the Outcomes

en e th
t e
Ec
o no
m
ic
 Above strategy would help in establishing the company and its
product with a perceived image of superior quality of product
Conclusion Having an element of surprise associated with it along with an
added quality of being pocket friendly

Growth should be Stitch Fix's top

objective in order to capitalise on and
strengthen its leading position, as
well as the scale economies and
network benefits that come with it.

Future Data must be utilised as part of the

Scope puzzle, not as the only solution,
according to Stitch Fix.

International Expansion is the next

milestone of stitch fix
Thank
You!!
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