mp4 pricing - our potential customers said they were not...

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Pricing Strategy Value Based Pricing Our most kept goal in mind when pricing our service was that our potential customer – who responded through our survey (see) - value affordability with our service the most. We have to trust that affordable prices combined with an outstanding service perceived by our customers will drive demand for our service upward. With expensive inventory fees, salary, and inventory fees our setting prices to be affordable can be difficult which is why we have chosen a value- based pricing technique. It is necessary in order for us to survive as a business to charge above $30, however 24.24% of
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Unformatted text preview: our potential customers said they were not willing to spend above $30 (see). With value-based pricing we can focus on creating value in our product and service to our customers so that we can raise the 24.24% who would only pay $30. Charging any less is a miss opportunity for the Operating Expenses Month Annual Nominal Rent $1,400.00 $16,800.00 Heating, Water, Electricity $150.00 $1,800.00 Salary $110,000.00 Payroll (9.5 hr) $8,333.33 $100,000.00 Inventory Fees $3,000.00 $36,000.0000 Initial Store Setup $5,000 Total Costs $269,600.00...
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This note was uploaded on 10/09/2009 for the course H ADM 243 taught by Professor Rkwortnik during the Spring '06 term at Cornell University (Engineering School).

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