Students set prices using marginal analysis. This pricing approach looks for the maximum profit point, considering the firm’s cost structure and the likely sales at different price points
Students use target profit pricing to determine how many units we will need to sell to both cover costs AND achieve a set profit.
Work through two examples of using break-even analysis for pricing, to gain a better understanding of this approach.
The task for this activity is to work through the two examples for cost-plus pricing for students to gain a better understanding of this method.
Pricing decisions will form a key part of the firm’s overall marketing strategy. In this activity, the task is to identify why the firm has adopted their particular pricing approach.
In this exercise, students are required to review the top-level financials of a small chain of hamburger stores and suggest improvements to their marketing mix.