Marketing Plan Pricing

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

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Marketing Plan Pricing
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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 $5.00 to produce. Existing high quality rolling-stock kits of any material range from $25.00 to $65.00.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern