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Price Strategy/Breakeven Analysis
One of the most challenging decisions faced by marketers is setting the price for their products and services. In order to select the right price, you need to ensure that you'll be able to cover your costs and meet customers' needs at a price that they are willing to pay. You will need to perform a breakeven analysis to determine the best price. Chapters 13 and 14 outline six steps that organizations follow to set price. Follow these six steps (as listed on page 322 in the text) to set prices for your product or service and perform a breakeven analysis. Submit your price strategy/breakeven analysis via the Week 5 Dropbox for grading and feedback. Be sure to incorporate any feedback provided by your instructor into your final Week 7 Course Project.
Complete the analysis using the six steps in the pricing process, which you can follow in the text starting on page 323 with step 1....and following through Chapters 13 and 14 to page 360. These pages will walk you through the steps and calculations for this assignment.
When the general price level rises and firms decide not to change their prices in the short run, this can be attributed to:
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