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Project guide - Essay Example

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Truly said, people will never forget about the services given by any service based organizations like restaurants, beauty parlors, consultancy firms etc. A true and unique service must be provided by setting a pricing policy as 1) selecting the pricing objective, 2) Determining…
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Project guide
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Download file to see previous pages calculating your costs; estimating the benefits to customers and the limits on how much they’re willing to pay; and comparing your products, services, and prices to others that are similar i.e. with the competitors.
Maximum current profit- here marketer estimate the demand and costs associated with alternative prices and choose the price that produces maximum current profit, cash flow, or return on investment (ROI).
Product/service quality leadership- providing high quality services at higher price specially targets premium customers. Here marketer believes in perfection with no compromise and thus offers his service at higher price.
A price is being established on the basis of owner’s own choice by following any of the above major objectives and also by the willingness of the consumers on how much they can pay, what are the substitutes available to them, is your competitor offering the same or better service that too on a lower cost than your service, you have to evaluate and then set the price of the product.
The price could be a low one so that you could attract and have access to a larger audience. Or you could approach it from the opposite end – charge a high premium so that each service would generate a lot of revenue and you would not have to work the long hours nor have more over-head.
For e.g. one of my friends is running a restaurant named as ‘The Diners Park’ and has invested a major chunk of his capital for this venture. So earlier, with the fixed costs, it was getting really hard for him to generate substantial profit. The customers very often like the quality of food and ambience of his restaurant but it was the price of the food items which was the main concern of his customers and of his as well. He earlier took product/service-quality leader as an objective and thus set the prices higher than his competitors but provided a high –class premium quality food and services. But after analyzing the whole case he found that though ...Download file to see next pagesRead More
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