PRICING COMPONENT TEAM ASSIGNMENT
SAINT LEO UNIVERSITY
PRINCIPLES OF MARKETING MKT-301-OL02
“How do we determine the price of our product?” The first approach would be to use a cost-plus mark-up approach. Since you are unable to determine the production/manufacturing costs associated with your product your team will implement two other pricing theory tactics covered in the module.
The first theory you will be implementing will be competitive price comparison. In this scenario find other similar types of products. List 3 to 5 comparison products your team identified for pricing comparison. State why you picked these products and what the price is for each of the products. Then state what you believe would be a competitive price for your product.
Now, reflect on the Product Description assignment and review the features and benefits descriptions. Using this information establish a possible price point for your product using a value-based pricing strategy. Support/explain your price point decision.
Now, based on the above approaches, determine what your final price will be. State why you picked that specific price.
List 3 to 5 comparison products your team identified for pricing comparison.
- Home Depot
State why you picked these products and what the price is for each of the products?
I selected the products based off the similarities to my product type and brand. The price for Lowe’s is $35.00, the price for Walmart is $20.00, the price of Amazon is $30.00, the price of Target is $20.00, and the price of Home Depot is $30.00.
Now, reflect on the Product Description assignment and review the features and benefits descriptions
- Some of my product’s key features and benefits include:
- Rain shower heads feature a low-flow spray that imitates the relaxing feel of rainfall.
- Perforated nozzle that distributes water over solid angle a focal point use.
- Uses less water than a full immersion bath.
- Lightweight construction.
- Versatile can come I different variations.
Using this information establish a possible price point for your product using a value-based pricing strategy.
I believe based on my products features and benefits will justify my price point being around $20-$30 dollars depending on the market at the time I release my product for sell to the consumers.
Explain your price point decision
After my research on pricing theories and comparing similar products for sell in the market I have concluded that $25.00 is the best price point for my product. The price point is lower than some of the competitors such as Lowe’s and Home Depot, but still priced high enough to cover my cost to produce the product and still make a profit. The price point I have selected will still be competitive and appealing to my target consumer market. And will help me to achieve the goal I have set for myself in becoming a successful and have longevity in business.
Now, based on the above approaches, determine what your final price will be?
State why you picked that specific price?
I picked $25.00 as my final price point because it is lower than my competitors who have similar products from Lowe’s and Home Depot, but the price is enough to cover my cost to produce the product and make a profit also. I strongly believe the price point is competitive and will draw the attention of my target audience and will help me become successful and achieve my goals to have a sustainable business.