How would you arrive at prices for your coffee

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Reference no: EM133199055 , Length: 3 pages.

Discussion Post: Unique Brand Position

You are a small business person who plans to open a premium coffee shop, much like Starbucks. Your value proposition is premium blend coffee from small farmers around the globe, offered in a very modern setting that gives a very upscale feeling to patrons. You're location is in midtown Manhattan and is expected to be frequented by commuters who work in NYC as well as local residents of the upscale area where the shop is located. Compose a discussion post that responds to each of the following prompts:

I. Come up with a name for your coffee shop and provide a rationale for suggesting that name.

II. Considering your unique brand position, that you can understand from the description above, how would you arrive at prices for your coffee? How important are EACH of the 4 Cs (costs, competition, customers, company strategy) for in determining pricing for the products you sell?

III. Consider the pricing objectives and strategies (see our textbooks description of pricing objectives and strategies which start on p241) - what are your objectives as a new shop and what is your pricing strategy (long-term)? Explain your rationale.

IV. Propose an average price that you will charge for a cup of coffee. And then, assume the following factors - the average variable cost for all coffee sold is 15%; fixed costs for the shop in NYC = $50,000/month, and determine how much coffee you need to sell, at the average price per cup you're recommending, to breakeven (i.e., cover all costs) for a month?

Reference no: EM133199055

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