Identify the appropriate price strategy that should be used for the product or service.
We are going to create a strategy of low competitive price in the market at list with my competitors. We are not going to have like an exclusive product as luxury but some kind of high quality with an affordable price. Our pricing will be consistent with our positioning.
We are going to do a study on the demand curve on all the locations we are operating. We are going to do a survey with a group of potential future customers with the age range of fifteen to sixty years old, we are going to have them try the product, ask them about the pricing if they are more or less likely to buy the product at the price that we are offering or not we are going to ask them if they will recommend it to friends and families, we are also going to compare our product to our competitors, ask them what they like the most in each product so we can see what we can do the most to make ours better. We are going to consider all government regulations on the pricing because we don’t want be fined with unnecessary spending. We are not trying to just have a short term profit in this business we intend to stay and be the leader in the market one day .we are going to do some sort of fair pricing but will always make sure that our price will never be lower than the cost or we are not going to last.
We are trying to differentiate ourselves by offering low cost and quality product at the same time we are going to Calculate the fixed and variable costs associated with our product and services.