MNE3701 ASSESSMENT 04 SEMESTER 1 2024
Well prepared, clear and very easy yo understand ,touches on all ankles MNE3701 Assignment 4 semester 1 year 2024
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MNE3701 ASSIGNMENT 04 SEMESTER 1 YEAR 2023
NAME & SURNAME:
STUDENT NUMBER:
MODULE:
ASSIGNMENT NUMBER:
UNIQUE NUMBER:
, QUESTION 1
What is pricing?
Pricing is the process you use to set the price of your product or service. Pricing your products and
services can be difficult to determine. If you set your prices too high, your customers may find your
products too expensive. However, if you set your prices too low you will affect your profits.
The following steps can help you through the process of pricing your products (Paull, 2009):
1. Calculate your costs
Before you calculate your price, it's useful to calculate how much it costs to produce or deliver your
product or service. When coming to a figure, always consider the cost of producing your product or
service as well as your overheads. Don't forget to also factor in goods and services tax (GST) and
other relevant taxes in your costing.
When you’re pricing your products or services, remember to consider
• manufacturing cost
• your business's market place
• your competition
• the market condition
• brands
• quality of the product or service.
Once you know the true cost of your product or service you can then start analysing other influences
and set your objectives and strategies.
2. Determine your pricing objectives
A key consideration when you develop your pricing strategy is to understand your objectives when
you price your products or services. One objective of pricing is to make a profit on your products or
services, but there are many other pricing objectives that can affect your pricing decisions including:
• position in the market
• competitors’ positioning
• ability to supply to or increase demand.
It's important to keep your business and marketing objectives in mind when developing your pricing
objectives to ensure they complement one another. By establishing your pricing objectives early,
your choice of strategy may be easier to determine.
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