Thanks for helping us understand SWOT analysis
But we also need help with pricing… we just don’t know what price we should charge… can you help us???
Here is our financial and other relevant information:
- As you know, last week we had 50 customers
- BUT… we want to get to 300 customers per week – so please base your calculations on that number
- Each customer spends $20 each on an average visit to our store – and they buy two products at $10 each
- Our variable cost per unit/product is $1.50 each
- But to get more customers, we think that we need to cut our prices – but to what level???
- Our rent cost is $500 per week
- Our staff costs are $800 per week
- And our bank loan works out to be $300 per week
What price do we need to charge per PRODUCT (not per customer) to cover our costs and make $2,000 per week profit?
Code hint
Use the above information to calculate the product price. Note: it is somewhere between $1.50 and $10.00. Enter the price code as $X.XX (that is, with a $ sign and dollars, decimal point, and cents).