what’s in a price? why did apple select $579 as the retail selling price of the apple ipad air...
Post on 21-Dec-2015
219 Views
Preview:
TRANSCRIPT
WHAT’S IN A PRICE?
Why did Apple select $579 as the retail selling price of the Apple iPad
Air Retina tablet?
IMPLEMENTING AUTOMATED RETAIL: PRICE
PRICEThe cost of a good or service
o an exchange (typically a monetary exchange) in order to obtain something
•The price of goods and services is established to fulfill a successful exchange process with the customer.
o Customer perspective: price is what must be given up in order to get something that they want
o Seller perspective: price is revenue that is gained for a product that leads to profit for the seller
IMPLEMENTING AUTOMATED RETAIL: PRICE
PRICING DECISIONS• Making good pricing decisions is critical to the
success of the business.o If a product is priced too high or too low, it can create a
loss for the business.
• The term price is used interchangeably with the term cost—however, the two are very different. o Price is what a customer pays a seller—usually a retailer.o Cost is what the seller incurs (which may include cost of
production) to obtain the product.
IMPLEMENTING AUTOMATED RETAIL: PRICE
PRICING DECISIONS• Internal Factors: are within the control of
the business or can be altered by the business.o cost of goods, operating expenses, product mix
• External Factors: occur outside of the business operation and cannot be controlled by the business. o supply and demand, government regulations,
competition, natural and economic events
IMPLEMENTING AUTOMATED RETAIL: PRICE
PRICE TO MAKE A PROFIT• Retailers and School Based Enterprises need to
have a clear understanding of all of their costs involved. o The business must understand additional costs to
the retailer to sell the product through the automated retailing system.
• Automated retailing kiosks have additional costs of doing business.o leasing feeo credit card processing feeo specialized packaging and labels
IMPLEMENTING AUTOMATED RETAIL: PRICE
FEES AFFECT PRICING
• Leasing fees• Credit card processing fees• Specialized packaging and labels
IMPLEMENTING AUTOMATED RETAIL: PRICE
ACTIVITY
Pricing Products for the Automated Retailing Kiosk and SBE
IMPLEMENTING AUTOMATED RETAIL: PRICE
IMPLEMENTING AUTOMATED RETAIL: PRICE
PRODUCT Internal Factors External Factors Pricing Decision based on Internal and External Factors:
NIKE polo; custom embroidered with school mascot
Cost of item: $25 each
Packaging for Spirit Box: $.20
Credit card processing fee for Spirit Box: 2% of all credit card purchases
Company goals/profit objectives
Boosters online selling price for similar NIKE polo: $45
Price of other school stores in our district-:$40
Target market brand awareness
Total cost of goods- including packaging and credit card processing fee: $25.22
Company Objective: 50% markup on apparel
Retail price: $39
ACTIVITY
Pricing Spirit Factory Products for Automated Retailing
IMPLEMENTING AUTOMATED RETAIL: PRICE
QUIZ
Pricing Products and Considerations for Automated Retailing
IMPLEMENTING AUTOMATED RETAIL: PRICE
top related