Essay about Pricing Products With New Upcoming Businesses

Essay about Pricing Products With New Upcoming Businesses

Length: 1292 words (3.7 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

The above listed article gives great advice and ideas when it comes to pricing products with new upcoming businesses. When it comes down to it, it’s a given that customers compare prices and want to get a good deal no matter how much they desire a product. Of course a business owner needs to make a profit, and as the article says, the pricing must be figured in such a way that profit margins are at a high enough level to stay in business and grow. The article pin points creative service businesses such as web designers and its agencies. It can be difficult to come up with the right price structure. Basically these service companies need to price out their worth, as the article says. Competition needs to be taken in consideration when deciding on the right price as well. If a business charges much higher than competition for similar services, there is a good chance customers won’t want to commit to doing business. The article says when starting a business, it’s a good idea to figure out the average costs of competitors that offer similar services and use that pricing structure. After some time, word gets around and sales pick up, this can be a good opportunity to gradually raise prices. It is also suggested if pricing is on the low end, that it will be more beneficial to raise prices and have fewer customers than many customers at too low of prices. It is still important to have a decent profit margin. The writer introduces a term of pricing called “buffet style” pricing. I’ll use my own example of “buffet style” pricing; I, like millions of others am a cell phone owner. I pay for multiple services but am charged for one “bundle” price. This “buffet style” pricing includes talk, unlimited text messages and data usage. I may not use...

... middle of paper ...

...le/topic. Social media is all around us and I find it astounding just how fast it has grown. The book gave an example of Dr. Pepper and how the business engages its consumers on social media such as Facebook by posting every day and monitors responses from users and checks the number of views or how many times it is shared. Just as the final step the article describes, which is to listen. The purpose is to show to the consumer the business shows it cares and is staying engaged. In today’s age it can be the most important rule to follow. Switching gears on the management side is public relations. One of the criteria mentioned is also to “listen to the public” and “Inform people you’re responsive to their needs”. The books gives plenty of suggestions, which first and foremost is to keep the public informed about any changes and to understand its consumers expectations.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Strategy And Implementation Of Trulaney Deli And Bakery

- Strategy and Implementation The Trulaney Deli and Bakery will promote a new sales discount program. We will continue to advertise via the ValuPack coupons offering a two for one special on selected pastries, sandwiches, and menu items. We will continue this discount for the months November and December. We will introduce customer loyalty card as well as a ten percent senior discount available to seniors 60 and older on Monday through Thursday. The customer loyalty card will afford customers an opportunity to acquire stamps for gourmet product purchase for every $10 they spend; therefore, after receiving ten stamps they are eligible for a free $10 product....   [tags: Marketing, Pricing, Gross margin, Le Cordon Bleu]

Better Essays
779 words (2.2 pages)

Evaluating The Overall Pricing Strategy For The New Product? Essay

- Given your positioning statement, and value proposition, what advice do you give the firm regarding their overall pricing strategy for the new product. The firm is reviewing some data. Be alert that they may pass along some data you can use for this area. (WRITE IN DETAIL) For its Spectrum Band, TechMark should consider using customer value-based pricing. It starts with analyzing consumer needs and value perceptions. If TechMark set the price that is higher than the Customer Perceived Value, there will be less or even no customers who would want to buy this new product....   [tags: Pricing, Marketing, Supply and demand, Term]

Better Essays
1421 words (4.1 pages)

Dynamic Pricing : The Future Of Ticket Pricing Essay

- The focal article I chose is Dynamic Pricing: The Future of Ticket Pricing in Sports by Patrick Rishe published on January 6th, 2012 through Forbes. Pricing is an important component of the marketing mix because it is the element where managers have expectations of customers paying their money to the organization (Kopalle, 2009). Compared with other elements of the marketing mix, pricing has the advantage because there is a high level of flexibility. The flexibility is because prices change continually (Smith, 2008)....   [tags: Price, Pricing, Sport, Marketing mix]

Better Essays
704 words (2 pages)

Skills Needed For New And Upcoming Jobs Essays

- The people that come to college are the ones looking for nonroutine jobs and trying to get rid of their routine jobs. Technology is increasing every single day and it is making routine jobs fade away, and this is creating more opportunities for nonroutine jobs. Nonroutine jobs involve more knowledgeable people or people who have better problem solving skills, they are not easily achievable like routine jobs. This article will cover the skills required to excel in today’s world, and those skills are nonroutine cognitive skills....   [tags: Problem solving, Critical thinking, Management]

Better Essays
1123 words (3.2 pages)

Price Discrimination Is A Pricing Strategy Essay

- Price discrimination is a pricing strategy that charges customers different prices for the same product or service. In pure price discrimination, the business charges a customer the maximum price that they are willing to pay . This practice is becoming more and more important for customers because of the discrete ways that businesses are finding to make it easier to implement them in many different ways. These are categorized into three forms; First-degree price discrimination, second-degree price discrimination and third-degree price discrimination....   [tags: Airline, Marketing, Pricing, Price discrimination]

Better Essays
1143 words (3.3 pages)

Essay on Penetration Pricing

- Penetration pricing is a pricing strategy whereby an organisation introduces its goods or services to consumers at a comparatively lower price than the existing market price. The fundamental objective of such an approach is attracting consumers to the product in the hope that the consumer will establish a fondness or a need for the product. As a consequence, organisations use this strategy as a means to ultimately gain a higher market share for a particular product or service. Once this has been achieved, organisations hope to increase the price....   [tags: Business, New Goods]

Better Essays
2498 words (7.1 pages)

Essay on Pricing And Frequent Promotions

- A major consideration in business from both the manufacture’s and customer viewpoints is and has always been the price. The issue discussed here is” should the retailer practice “everyday fair pricing” or engage in “frequent price promotions”. Is it better for a brand to raise its regular price and offer price promotions or is the brand better off offering lower regular price with limited price promotions. In my paper I will support and argue for setting the right price, which in other words make shoppers feel they are getting a fair shake from the businesses they regularly patronize....   [tags: Business Price Pricing Marketing]

Better Essays
1919 words (5.5 pages)

Essay about Penetration Vs Skimming Pricing Strategy

- The pricing strategy for a new product should be developed so that the desired impact on the market is achieved while the emergence of competition is discouraged. Two basic strategies that may be used in pricing a new product are skimming pricing and penetration pricing. Skimming Pricing Skimming pricing is the strategy of establishing a high initial price for a product with a view to “skimming the cream off the market” at the upper end of the demand curve. It is accompanied by heavy expenditure on promotion....   [tags: Economics Pricing Business]

Free Essays
1597 words (4.6 pages)

Pricing Strategies Essay

- "Flanking in a Price War" discusses some of the strategies utilized by retail grocery chains, wholesalers, and co-operatives within the Quebec Grocery Industry. Pricing strategies are the main focus of this article. It outlines both successful and non-successful pricing tactics. In addition, it emphasizes the importance of considering all pricing options, through price experiments, before deciding upon a pricing strategy. It tells of the decline of an industry leader, Steinberg Inc. Steinberg Inc....   [tags: Business Pricing Strategy]

Free Essays
1215 words (3.5 pages)

Essay on Pricing Strategy

- The topic does lend itself to wielders of the big shovel, no question about it. The most elaborate explanation I've seen is in Scot Morris's Book of Strange Facts & Useless Information (1979): "In 1876, Melville E. Stone decided that what Chicago needed was a penny newspaper to compete with the nickel papers then on the stands. But there was a problem: with no sales tax, and with most goods priced for convenience at even-dollar figures, there weren't many pennies in general circulation. Stone understood the consumer mind, however, and convinced several Chicago merchants to drop their prices--slightly....   [tags: Businesss Price Competition]

Free Essays
1548 words (4.4 pages)