Week 9- Chapter 19, Meeting & Group Work

Week 9

 Tuesday

     On Tuesday we had meetings by Smart Project group with Professor Spotts. In our meeting, we mostly discussed our surveys. We were shown that we should rearrange our survey so that we do not ask the most direct or serious questions right away. We rearranged our survey and we also put two questions into one question. We also talked about how we would not be able to ask these questions to bars because we are not 21. We came to the conclusion that we could either visit bars that are in restaurants so that we could get in, or we could have Sam, our marketing consultant.We only had to be present in class on Tuesday during our group meetings. That is all we did in class on Tuesday.

Thursday

     On Thursday we spent most of the class with another Smart Project group discussing Chapter 19 and pricing concepts. It is important for us to keep pricing concepts in mind when we create our project. For us, our product has limited competition. This means that we could likely charge a high rate for our product. This also means that our product is not very price sensitive. If we are the only provider of this type of product, a price change would not likely affect sales. If we were to increase prices, but businesses or people still wanted or needed this product, they would likely still buy it, regardless of price. In class Thursday we discussed many questions regarding pricing concepts with another Smart Project group. Our group worked with the ThermoWheel team. It was helpful to have another team in this process. It allowed us to get different ideas from new people that we had not yet worked with. It was very helpful and I feel that the knowledge we gained from it will be valuable in working on our projects going forwards.

Chapter 19

     We also discussed other concepts from Chapter 19. Break even price is the price when total revenue equals total cost. This is important to know when selling a product so you know the best price to charge to not only break even but also make a profit. Factors that affect the break even price include product price, variable costs, and fixed costs. Price bundling is marketing two or more products in a single package for a special price. This is something that we may be able to use in our project. We could add instillation into a bundle or training of bartenders for a special price. The steps in setting the right price on a product goes as shown here on the right. Step one is to establish pricing goals. Step two is the estimate demand, costs, and profits. Step three is the choose a pricing strategy. Step four is to fine tune with pricing tactics. These steps result in finding the right price to charge. This would be a helpful tool to use if we had to price our product if we planned on really taking it onto the market.