Wed. Oct 13 pricing Continued

Partner Pricing Assignment: You are opening a new school store at Isfeld. You have to determine 3 products that you think would be good potential products in order to make money for the school. I want you to find these products at wholesale and then set the retail price for each product. 

Answer the following questions with regard to your task.

1. Why and how did you decide on the products you decided to put into the school store? Please explain the quality level of these products whether each is a high, medium , or a low end product.

2. Determine a pricing strategy for each of the 3 products and explain why you chose this strategy to price your products.

3. List the wholesale and retail cost for each product as well as the profit margin for each product.

4. If you sold 100 of each product, determine then dollar value profit you would make on each product and the total profit of all of the products combined.

Example to understand simple profit margin.

Profit margin= net sales-cost of goods sold / net sales 

$20 - $10 = $10 divided by $20 = 0.5 = 50% profit margin

Understanding Premium Pricing