Group Report 8

Group Report 8 - MotionAct Our sales plan for our first...

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MotionAct Our sales plan for our first three years of operation was designed based on a variety of different factors. Our price is mainly based on the prices of other similar products in the market. Though there are not exact replicas or chargers that are movement activated, the cost of these products will be similar due to the same materials. Our price will also includes a reasonable profit margin to cover the cost of creating the iPod charger. The first year of business, the U- Charge will sell for $40. It will then sell for $35 the second year, then $30 the third year. We chose to use a skimming pricing strategy, which is why customers will see our price drop over time. The reason for this is because we have a new to the market product, and therefore will be the only company producing a motion activated charger for at least the first year. The high original price allows us to cover our sunk costs at first, then to competitively price our product in the future. We plan to sell 10,000 units our first year, then 35,000 then 70,000 our second and
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Group Report 8 - MotionAct Our sales plan for our first...

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