Question.2592 - Pricing is one of the most important, yet difficult, aspects for a business. How do you set your prices? For this discussion, I want you to set the price of this flower arrangement. It has 24 purple mums, 16 orange mums. 16 mini red mums, 10 un-bloomed green mums, one pink rose, 5 birthday candles, on a plastic stand. Cost of Packaging is $9.78. You will need to determine price of flowers as they will vary depending on your pricing strategy. Standard delivery is $10. What other facts do we need to know before you can even think about pricing? Start your posts with clearly stating the textbook pricing strategy you are using. Be sure to arrive at a price that makes sense to the declared strategy. (Hint: You can't be the highest quality and the lowest priced; that doesn't fit a strategy) First, watch this short video Link (https://youtu.be/CiQ6rBTrkC0) (https://youtu.be/CiQ6rBTrkC0) Be sure to include the following 1. Segment and choose a target market. Explain why this is the market and why the other ones are not. 2. Use one of the pricing strategies discussed in the textbook. 3. Explain why and how you arrived at your price 2/13/23, 6:59 PM Topic: Week 6 Concept Discussion https://worldclassroom.webster.edu/courses/1430763/discussion_topics/4386229 2/4 4. Explain how your target market will react to the price and why. This must be based on what you learned about consumer behavior not just an opinion. In other words, you cannot simply price the arrangement at $9.99 and target low income and say they will by it because that's all they can afford. That is opinion. 5. Include detail about the research conducted to arrive at the price - you cannot set price in a void. it must be founded in research. Post your original post by Wednesday night at midnight. This rubric will be used to grade each week. discussionboard_rubric.docx (https://worldclassroom.webster.edu/courses/1430763/files/69356192/download?wrap=1)
Answer Below:
My target market will be based on the behavioural aspect. I will mainly target the youth in this segment. I will target the youth because believe more in the gifting strategy than the other age groups. A bouquet of flowers is considered to be a safe option when they are in a dilemma. The pricing strategy which I will use in this case is the cost plus pricing strategy. This is considered to be one of the simplest forms of pricing strategy as a certain percentage is added to the cost of production. The pricing of the bouquet needs to be done in such a manner so that it is affordable to everybody. The average price of 24 purple mum =$10.50 The average price of 16 orange mum = $11 The average price of 16 mini red mum=$7 The average price of 10 un-bloomed green mum =$$12 The average price of one pink rose =$ 3.5 The average price of 5 birthday candles = $3 The average price of the stand =$4.5 Cost of packaging =$9.78 Standard Delivery = $ 10 Therefore the total cost = $10.50+$11+$7+$12+$3.5+$3+$4.5+$9.78+$10 =$71.28 A mark up of 10 % is added to the total cost of the bouquet Therefore, the total selling price of the bouquet = 71.28+10% =$78.41 In my opinion, the bouquet is standardly priced at $78.41, it may be slightly a higher price for the low-income group of people. In that case, the number of flowers can be customized for them to make the bouquet accessible to them. On the other hand, it is appropriately priced for the middle-income and higher income groups of people and it is within their reach. This is considered to be the standard pricing and prices can vary as per needs and demand of the people.More Articles From Marketing
.ico)
.ico)
.ico)
.ico)
