Reference no: EM132261632

Pricing Point for a Full Body at home dryer to eliminate the use of towels Decide on your pricing objectives and your pricing strategy (skimming, penetration, etc.) Tell why you think that strategy is best? Justify your choice of strategy. What conditions exist in the market that led you to choose that strategy? I know it is impossible to accurately estimate costs but take a stab at your basic per unit cost, other costs. The purpose of doing this is, of course, to have you recognize the importance of considering costs when developing the remainder of the 4 Ps. To set a price you will probably need to consider target costing (working backward from what your customers are willing to pay). Write up the product concept (complete description) and ask 8 to 10 people (hopefully in your target market) what they would be willing to pay for such a product. Record the prices (chart) and average them for your suggested retail price. Remember that every organization in the channel (wholesalers, retailers) has to be compensated for what they do, so your own selling price to the next organization in the channel will have to be much less than what the customer would be willing to pay. This, of course, depends upon the type of channel that you choose to distribute your product. You can also estimate demand by asking your same 10 respondents if they would be likely to buy a product like yours. Calculate the percentage that say “yes.” You might also ask your respondents to rate the likelihood that they would buy your product on a scale of 1 to 7 and then present your results. Report your findings and tell how it influenced you in setting your selling price. State a price. Tell if the price is the suggested retail price or your price to the next party in the channel (e.g. wholesaler, retailer, etc.).