How to Price Goods and Services

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Retailers are faced with a number of important decisions when determining how to price goods and services. Setting prices correctly can win more customers and drive sales—while incorrectly set prices can have a negative impact on sales and hurt customer loyalty. Because of this, most retailers use certain retail pricing strategies to make sure prices are optimally set.

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For this discussion, select a product and choose three different types of retailers for pricing comparisons. Your product can be food, clothing, or other types of items – BUT – it must be the same product, item, not a similar one.

For example, you might choose a specific brand of shampoo, such as Dove Intense Repair Shampoo, and compare pricing at a large chain drugstore, a local drugstore, a supermarket, a convenience store, a Walmart, or even an online store. Another example, you might choose a specific clothing item like Levi jeans and compare pricing at a specialty store, department store, discount store, online store, etc.

Once you selected your product and researched your three retailers, complete the following:

Thoroughly read Chapter 10: “Price: What Is the Value Proposition Worth? “In addition, be sure to review Identify Strategies and Tactics to Price the Product in section 10.3 of your e-text.
Name the product, item you selected.
Name the three stores, retailers with prices you recorded for your selected product from each retailer.
Finally, if there were price differences, what factors do you believe led to the variations in prices? And tell us, is it worthwhile for consumers to compare prices when they shop?

Be sure to answer #3 thoroughly and you must incorporate the information, material from the e-text in your response.

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