A. List the factors affecting the price of your product/service.
B. Should you utilize a skimming, penetration or moderate pricing strategy? Why?
C. Select one of the following options (offer price(s) you will utilize and justify your choice:
A specific price
A combination of the above options
D. How will you see to it that your target market perceives a price/value relationship when they purchase your product/service? Specify actions/steps you will take.
E. One source is required, which will be added to the bibliography.
F. Include source page(s).
G. Exchange papers with a classmate. (Hard copy or email). Read Sections and critique. The two questions listed on page two will be answered.
Student who Created Document _________________________
Student who Critiqued Document ______________________* Maria’s Grade ___
This two page document will be handed in to Maria along with the student’s assignment. Maria will grade Student’s Critique of a fellow classmate.
Name ____ Product ____ Assignment document _______ Folder ____
Not outlined/subheadings used _____ First person Not used ______
Completed all sections___
One Source ____ Source Pg(s) _____ Bibliography ____
What areas did the Student complete correctly?
What areas need to be improved? Make suggestions.
A. Factors Affecting the Price
1. Target Market – Hagerman Tax Firm’s target market is mid-level white collar business men and women. The target market wouldn’t mind paying a little bit of a premium to have their taxes done right.
2. Competition - TurboTax and others offer software that allows clients to do their own taxes. This software is cheaper than getting your taxes done by a professional. At Hagerman Tax Firm we can’t beat the competition in price but hopefully we can beat them in quality.
B. Pricing Strategy
1. Hagerman Tax Firm will use a moderate pricing strategy. The reason for this is that as a new company Hagerman Tax Firm would not have the cash to compete using penetration pricing. Because it is a tax firm and people will only need to use the firm once a year they might check prices every time they need to use the service. A premium pricing strategy would not work