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Part 1. Expository Essay: Describe what your products and/or services will be and the pricing strategy involved for your chosen business. Please respond to the following Checklist items:
Pricing Strategies
Penetration Pricing = Pricing below normal, long-term price to gain market share.
Skimming Pricing = Pricing an item high in the short term to capture the prestige market─helps to recover start-up costs.
Variable Pricing/Dynamic Pricing Strategy = Lower pricing for certain customers based on their ability to pay. (Amazon uses this type)
Price Lining = Different quality level product of a certain type are priced by category. Ex: Women’s handbags─Designer bags $300, name brand $200 and all other $100.
Market Pricing = pricing based on the market- what people are willing to pay only works if there is very little or no competitors.
APA requirements
Part 2. Sales Projections: In this section you will use the Unit 6 Assignment template (Excel file) located in Course Documents to compute how much you think you will sell the first 3 months; 6 months, and 1 year? Show how you did the math in your answer.
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