Post 2F: Pricing Strategies

pricing_lesson

This past week we’ve been working on the manufacturing of our product for sale.  Next we need to consider what to sell our product for.  There are a number of different strategies that can be used to determine pricing.  This is, of course, all subject to the overarching influence of supply and demand economics.  What are some of the other micro-factors that go in to determining price?  What price do you think we should be selling our product for and why?

25 thoughts on “Post 2F: Pricing Strategies

  1. Successful pricing should be based around how exclusive the product is, and the demand of your product. If there’s no demand or no market for it you really shouldn’t be trying to charge premium prices.

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  2. I think some other factors that go into the determination of price is the size and of the product. These are 2 major factors that mean people arent going to buy them if he look bad, fall apart, or the size is too small. I think a good starting price is around 6 dollars because all of the supplies costs about 3.50$ and we want to atleast make some profit.

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  3. Pricing is mainly based on the supply and demand, and supply and demand are balanced to each other. If supply is high the demand will go down, same process when demand is high. For our product the candy wrapper bag i think we need to sell it for $4-$6, because this is the price that best fit the handmade bag.

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  4. I think all bags should be priced differently depending on a couple characteristics of the bag. The main factor to consider would be the size of the bag for obvious reasons. Other factors such as quality of the bag as well as the overall design could contribute to the pricing. In my opinion the small bags should go for 2.50$ while the big ones go for 5$. I wouldn’t say this is the set price of ALL small and big bags, having price exceptions depending on the other qualities of the bag. For example a small bag that is very sharp and stylish could go for 5$ while a bigger bag that wasn’t made very well could go for a lower price then the standard 5$.

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  5. The largest factor when determining the price is how much the cost of creating and building a product cost. In order to be a successful company we need to be able to turn a profit and not a loss. Another factor that must be looked at is how much people will be willing to pay, we must pick a price that we are both making a profit and at the same time one that is fair to the consumers. Looking at these factors I think that the price of our product should be dependent on size and range from 3-5 dollars this will be both a fair price and allow us to turn a profit on our products.

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  6. Pricing is usually determined by the cost of the materials it’s made of and the size of the product itself. Another way to determine price is consumers need for the product and if people keep buying it the price may go up. I think our product should be between 3-5 dollars because it’s a much smaller product and people may question the quality and wouldn’t want to spend much money.

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  7. Some factors that determine price would be: whether the good is luxury, normal, or inferior, consumers income, and whether or not there are better substitutes on the market. I think the products should sell for 3-5 dollars but 5 dollars would be pushing it in my opinion. This is because the bags are literally made out of garbage and scrap fabrics. The stitching on the bags are not tight enough and some have openings that don’t look pleasing too the eye. Also the bags feel cheap and childish. I don’t think many people would buy this product. My product was so bad that I had to buy it; to be fair, it was not up to production standards. I think what a lot of consumers might think when they see these bags are “Gee, why would I spend 3-5 dollars on a bag made out of garbage when I can get much better products on the market?”

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  8. a factor used when determining the price, would be the quality of the product and how much use the product will actually get. For our bags we have 3 sizes in out bags, so I think we should have 3 different prices. we should make the small one 3$ medium 4$ and large 5$. This way we will get more sales because they are not priced too high and people will actually buy one.

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  9. The price of a product are subject to the overarching influence of supply and demand economics. There are, however, a number of different strategies that can be used to determine pricing. Some of the other micro-factors that go in to determining price are the price of the competitor’s product, or the price that the consumers are willing to pay. I think our product should be sold for $2.50 – small and $3.50 – large.

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  10. I think we should price our bags based on size. We basically have 3 sizes of bags. We should make big ones $5, medium ones $4, and small ones $3. People will think that they are getting a fair deal.

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  11. Pricing is mainly based on the ratio between supply and demand. When supply is up, demand should go down, and vice versa. When the two are balanced, then the business will profit the most. However, there are some micro-factors that can determine the price, such as the competition, the economy, and government regulations.

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  12. Usually the market decides the pricing of the good. However in some cases the company can decide these factors. One specific example I can think of is Apple. They brand their products as innovative and premium so they can charge high prices for products that offer the same services that other companies offer. To conclude barnd identity has a lot to do with how goods are priced.

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  13. Some of the micro factors that go into determining price would relate to the size of the product, as well as how clean is looks as well as the durability of the Royal Wrappers. I think we should we be selling the bags for different prices, being that smaller bags are sold for 2$ and bigger bags for 4$ depending on quality of the bags because the smaller the bags will not be able to fit nearly as many every day items as a bigger bag.

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  14. Usually it is the market that determines a product’s price, not the company. The price of a product is essentially how much consumers are willing to pay for it. It can also be seen as supply and demand. If the demand is high then the prices are high, and vice versa. For the Royals Wrappers we currently have no demand, so if we need to sell them then the prices need to be very reasonable. I think the price for one Royals Wrapper should be anywhere between 3-5 dollars, just enough to cover the cost and to have revenue for donation.

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  15. Factor that determine the price is demand. After seeing other classes selling their product. I think our product wouldn’t be high in demand. So instead of selling at a low price. We can set our price to 10 dollar for a small bag and 15 dollar for a bigger bag.

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  16. To determine the price of a product, supply an demand nee to be taken into consideration. If the supply is larger than the demand, then prices will be lowered.(Vice versa.) Factors such as durability and quality also effect the prig strategy as people will pay more money for a more luxurious item.
    We should be pricing our product for $2 because it’s not a luxurious product and people usually carry $2 in their everyday life. This way people won’t send guess buying our bags since it’s for a good cause. Even with such a low selling price, we would still break even and make profit sine all we had to buy were zippers.

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  17. To determine the price of a product, supply an demand nee to be taken into consideration. If the supply is larger than the demand, then prices will be lowered.(Vice versa.) Factors such as durability and quality also effect the prig strategy as people will pay more money for a more luxurious item.
    We should be pricing our product for $2 because it’s not a luxurious product and people usually carry $2 in their everyday life. This way people won’t send guess buying our bags since it’s for a good cause. Even with such a low selling price, we would still break even and make profit sine all we had to buy were zippers.

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  18. some other factors are : how much we paid for the materials and the construction of the product, the idea and development, packaging, handling etc… I believe the right price should be 3$ because we spent 1.15$ so we would double up and earn some money…. considering that we used recycled wrappers.

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  19. I think we should price our bags based on size. we have about 3 sizes that have been made. make big ones $5, medium $4, small $3. People are then going to think of big ones are $5, $3 isn’t bad for a small one and then you just get lots of smaller sales rather then making them really expensive and only selling 5.

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  20. i think that the other factors which go into determining a price are quality, competition , quantity, and how much it costs to create. I think we should price of product at 3-5 dollars depending on size and quality and how inclined the students would be to buy. The higher the quality of product the higher demand for our product which would bring more sales allowing us lower prices.

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  21. A factor that affects our product is the differentials between our bag sizes and the quality of them. This means that we cant establish a set price for all of our bags as they are not all worth the same for their size. A factor that also affects us is supply and demand, we have low supply and currently have no demand which is not a great indication of our projected sales. These factors are important when choosing how much to price a product for its eventual sale.

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  22. Other factors that go into determining a product’s price is the product’s aesthetic and how nice it looks. If a product is selling to kids, but looks bland and isn’t very colourful, it likely will not sell very well. I think our product should vary depending on the product’s size. For example, a smaller bag would only cost 3 dollars, whereas a bigger bag would cost 5 dollars. This way we are able to make profit from the bags, as well as make the price affordable for the customers.

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  23. I think some other factors that go into dertermining the price is the size, look and durability of the product. These are some major factors because people arent going to buy them if he look bad, fall apart, or the size is too small. I think a good starting price is around 6 dollars because all of the supplies costs about 3.50$ and we want to atleast make some profit.

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  24. Factors that determine the price include idea and development of the product, how long it takes to create, packaging, shipping and handling, and advertising. I believe our product should be around $2.50 to $3.00 because they were relatively inexpensive to make, and we want to be realistic and have them to be able to sell to our demographic.

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  25. Economic theory says that the price of something will tend toward a point where the quantity demanded is equal to the quantity supplied. This price is known as the market-clearing price, because it “clears away” any excess supply or excess demand.

    Market clearing is based on the famous law of supply and demand. As the price of a good goes up, consumers demand less of it and more supply enters the market. If the price is too high, the supply will be greater than demand, and producers will be stuck with the excess. Conversely, as the price of a good goes down, consumers demand more of it and less supply enters the market. If the price is too low, demand will exceed supply, and some consumers will be unable to obtain as much as they would like at that price—we say that supply is rationed

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