Section Six: Pricing
Using the idea that you have chosen, finish your paper by covering the following:
Explain the fixed and variable costs and how these fit with the company's short- and long-term goals. Use a narrative with a table to show calculations for cost categories. Provide reasonable estimates for each of the categories. Specific or in-depth financial analysis is not necessary.
Examine competitors' pricing and explain reasoning for differences.
Estimate how much you think the target market is willing to pay for your product/service. Is this due to preferences for social responsibility, ethical behavior, or other intangibles?
What pricing strategy (skimming, penetration, economy, or premium) is most appropriate and why?
Guidelines for Submission: Milestone One should utilize double spacing, 12-point Times New Roman font, one-inch margins, and discipline-appropriate citations.It should be 8-10 pages in length and follow all APA formatting requirements.