Understanding the Concepts Essay Example | Topics and Well Written Essays - 1500 words

Understanding the Concepts - Essay ExampleHowever, this has affected customer loyalty and the high societys profitss. In order to make profits and offer quality products and services, the party has sought tending (a better pricing policy) from Prime Pricing Solutions.The development of a expounded pricing policy for pabulum and Beverage Company or operation comprises of five key stages. These stages include market feasibility study, canonical price level and over alone percentage hoggish profit, departmental gross and profit margins, differential profit margins, and other matters such as cover charges, and service charges. The stages will help the smart set in choosing the better(p) price setting process to establish profitable and sustainable prices for the consumers. In designing the pricing policy for the company, the aforementioned steps will be followed as indicated. The first stage is market feasibility study. Because the company is already established, market feasib ility study will not apply. However, there ar important things that the company can note from the market feasibility study. First, the feasibility study generates a consumer profile it describes in detail the consumers sex, socioeconomic status, age, nationality among other things. Second, it determines the consumers average spending power (Kotas, 1999).If the company did not realize a comprehensive market feasibility study, it will be important that it perform it to determine how they are going to price their products and services. It is important to note that the consumer profile has the most detailed and all-pervasive impact on all the regimen and beverage processes (Kotas, 1999). The second stage is the basic price level and the overall percentage gross profit. Based on the ASP (average spending power) and the consumer profile, the basic price level and the overall percentage of food and beverage gross profits can be determined. Therefore, the company can decide to charge a p articular price for the foods and beverages. The