PRICEFORECAST (2)

PRICEFORECAST (2) - TOTAL HOUSEHOLDS 1,100,000 POPULATION...

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PRICING AND FORECASTING EXAMPLE FOR MINI PROJECT 2 Retail Selling Price $300 Retail Markup % 40% NORMAL RETAIL MARKUPS = 15-60% OF SELLING PRICE Retail Cost % 60% Retail Cost 300X60% = $180 Wholesale Selling Pric $180 NORMAL WHOLES MARKUPS = 10-20% OF SELLING PRICE Wholesale Markup 15% Wholesale Cost 85% NORMAL AGENT MARKUPS = 5-10% OF SELLING PRICE Wholesale Cost 180X85% = $153 Mnfr Selling Price $153 NORMAL MNFR MARKUPS = 40-60% OF SELLING PRICE Mnfr Markup % 40% Mnfr Cost % 60% ***ALL MARKUPS ARE ON SELLING PRICE!!! Mnft Cost $153X60% = $92 FORECASTING SALES FOR METROLINA AREA
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Unformatted text preview: TOTAL HOUSEHOLDS 1,100,000 POPULATION 1,500,000 Identify Target Market Size (Households or Population) from your census data EXAMPLE IF YOUR TARGET MARKET IS WOMEN BETWEEN 18-35 AND THIS REPRESENTS 20% OF THE METROLINA POPULATION, YOUR TOTAL MARKET SIZE WOULD BE 1,500,000 X 20% WHICH WOULD EQUAL 300,000 WOMEN. IF YOU THINK A REASONABLE ESTIMATE OF SALES WOULD BE 1% FOR THE FIRST SIX MONTHS THEN YOUR SALES FORECAST WOULD BE 3000 UNITS. and calculate a reasonable forecast....
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This note was uploaded on 11/15/2010 for the course MKTG 380 taught by Professor Robbins,j during the Spring '08 term at Winthrop.

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