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Forcast for a Cafeshop Stratehy

Essay by   •  January 27, 2013  •  Study Guide  •  284 Words (2 Pages)  •  1,063 Views

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FORCAST FOR POSSIBILITIES

THREE ALTERNATIVE PRICE- INCREASES STRETEGY THAT ADDRESS THIS CONCERNS

Customer value -based pricing: with this strategy must first assess the customer needs and values perceptions. Setting price based on buyers' perception of value rather than on the seller's cost (Armstrong el al 2012). After asses customer need and value understanding or ideal, must target price to match customer perceived value of coffee, add value to the coffee to differentiate it from other coffee, customer want value and are willing to pay for it.

Cost-based pricing: this strategy will help before setting price should be based on producing, distributing, and selling the product plus a fair rate of return for effort and risk (Armstrong el al 2012).consider this types of cost - based pricing

Fixed cost: cost that do not vary with production or sales level, this may include, the shop rent, maintains

Variable cost: cost that vary directly with the level of production, this may include, the cost of the coffee bean, the packaging

Competition-based pricing: this strategy will help me aware of what the competitor is doing and how my pricing is going to varies theirs. Setting cost bases on competitors' strategy, prices, and cost and market offerings (Armstrong el al 2012). No matter what price will be charge, high, low or in between, must be certain to give customer superior value for that price.

Before this price is change must also consider internal and external variables that will affect the decision of price.

I must decide its overall coffee marketing strategy before setting price

Coordinate pricing decisions with packaging, promotion (more coffee and gift), selling other things in the shop such as, don not and cakes.

The demand for coffee will determined the affect of increasing the price.

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