Pricing is one of the hardest things to
set. It needs to cover our production, distribution, and operation costs, while
still gaining our company a profit. Most business to consumer pricing for our
competitors is anywhere from .50 cents to upward of $1.50. We also have to take
into account this is a mark up for retailer profit. “Price is the amount of money customers must pay to obtain the
product.” (Marketing An Introduction,
Gary Armstrong, pg. 54) I calculate the cost per unit to businesses to
be .75 cents to allow for mark up. We can ship in cases of 25 each, bringing
our price per case to $18.75. As long as we can sell enough and keep our costs
below .50 cents per unit, the company can turn a profit.
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