Question

Briefly Explain (Q1) Consider the last non-food item you purchased. List the item and then describe the steps you would take to properly price the item in context of the item. Based on this, was the item you purchased priced correctly?

Answer 1

answer-

The Last item i purchased was Sensodyne Sensitive tooth paste for $5.47 for 4 ounce pack.

If i have to price the item then i would first analyze the cost of manufacturing this Toothpaste. lets suppose that cost of manufacturing take $ 2 per pack of toothpaste. then i would add cost of marketing and distribution say $.5 for each pack so total cost is $2.5 per pack.

second step is to analyze the market and see the product i am offering is unique or it have many competitors in the market.i also see the demand of my product. if my product which is sensitive toothpaste have less competition which in reality this have very less competition because there could be only 1 or 2 companies that offer toothpaste for sensitive tooth. so i put price high to make profit like skimming pricing. so i put price like double $5 for each pack.

so, i would say the price of this pack was correct because $5.47 for sensitive teeth is good like many people pay several dollars at dentist to treat their teeth so it saves my those dollars so this price was correct.