• April 26, 2022
  • David Marks
  • 0

AB 209 Unit 6 Assignment Pricing Updated (Liquor Store) 

Two of the four P’s — Product and Price There are two parts to this Assignment.
Part 1. Expository Essay:In this Assignment you will respond using an expository essay format. Anexpository essay involves investigating the topic, analyzing your findings, and supplying a solution or a suggestion to address the problem or task, and supporting your position.
Part 2. Sales Projections:You will use a template (Excel file) located in Doc Sharing to computehow much you think you will sell the first 3 months; 6 months, and 1 year? Show how you did the math in your answer.
Part 1. Expository Essay:Describe what your products and/or services will be and the pricingstrategy involved for your chosen business. Please respond to the following Checklist items:
Provide an introductory paragraph to explain your business briefly and the intention in writing this paper.
Describe what your business will be selling; Describe the products and/or services (name 3–4 main ones) and the value proposition. Based on your research of the competition, describe the competition’s product/service and provide the price. Then describe the pricing strategy you will
use and how the competition’s prices have affected your competitiveness in the marketplace.
Pricing Strategies
Penetration Pricing = Pricing below normal, long-term price to gain market share.
Skimming Pricing =Pricing an item high in the short term to capture the prestige market?helps torecover start-up costs.
Variable Pricing/Dynamic Pricing Strategy =Lower pricing for certain customers based on their abilityto pay. (Amazon uses this type)
Price Lining =Different quality level product of a certain type are priced by category. Ex: Women’shandbags?Designer bags $300, name brand $200 and all other $100.
Market Pricing =pricing based on the market- what people are willing to pay only works if there is verylittle or no competitors.
Explain whether you will buy on credit and the kind of credit terms you expect from your suppliers and why.
Then explain your customer credit policy; explain whether you will extend credit to your customers and why or why not. If you will extend credit, please describe the terms you expect to receive and/or extend and why.

David Marks

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