If you select this question, provide a thoughtful 250+ word response to all of the questions below (250 words total, not for each section). Also, remember to comment on some of these in order to meet the participation requirement for the week. Finally, please separate your answers by the parts of the question. It makes it easier to see your specific response to each part.
DQ1 – Pet Grooming
You and your two roommates are starting a pet grooming service to help put yourself through college. There are two other well-established pet services in your area.
Should you set your price higher or lower than that of the competition? Justify your answer.
One roommate believes the most important objective in setting prices for the new pet grooming business is to generate a large profit, while keeping an eye on your competitors’ prices; the other roommate believes it is important to maximize sales and set prices according to what your customers expect to pay.
2. Who is right and why?
3. How do the number of competitors in the market affect YOUR pricing strategy?