Marketing Plan Pricing

Marketing Plan Pricing - Marketing Plan Pricing Pricing HO...

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Marketing Plan Pricing
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Pricing HO Craftsman Rolling-stock will price its offerings to return a reasonable profit margin on materials and a significant profit margin on intellectual property. The basic model offering will be priced at $49.95. The costs involved with a basic kit include an average of $4.00 in wooden parts, $2.25 in detail pieces, $1.15 in packaging, and $. 60 in instruction sheets. A kit can be assembled and prepared for shipping in less than 15 minutes at a cost of $2.00. Thus, the actual cost of a kit represents 20% of the retail price. Depending on volume, the remaining 80% will be split appropriately among G&A costs, operational costs, marketing costs, and profit. Shipping costs and taxes will be added to each order based upon destination and shipping preference. Customized kits will be sold at $64.95 and represent an additional $9.00 in parts and an additional $1.00 in preparation costs. Instructional DVD’s for beginners will be priced at $19.95 and cost an average of
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This document was uploaded on 08/22/2011.

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Marketing Plan Pricing - Marketing Plan Pricing Pricing HO...

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