Question

Determine risks associated with your pricing objectives on objects in your tech company Look at how the price is affected by

• supply and demand
• the competition
• economic conditions
• government regulations
How does the target market itself affect your pricing?
Open a document and title it Pricing
Create a heading on the document and label it Risk Factors.
Write four to five sentences that describe your product in relation to each of the specific risk factors
Determine your pricing objective. Note that you can choose to maximize sales, profits, market share, or simply to cover your costs and earn a modest profit
Create a second heading on the document and label it Pricing Objectives
Write your pricing objective in one or two sentences. Note that you may decide to optimize on more than one objective at the same time

Open a spreadsheet and title it Pricing Worksheet
Create five columns with the following headings
Product/Service
Cost of Goods
Cost of Sales
Markup
Product Price
Discount

Select one of your products or services and add it to the worksheet under Product or Service
Continue across the row to fill in the cost of goods, cost of sales, markup, product price, and discount for each product or service listed Add at least two products or services.
Cost of Goods. This is the amount of money you'll spend to get your product ready for sale. including the cost of materials, labor, and even the cost to dispose of waste from the manufacturing process
Cost of Sales This is the amount of money you'll spend to market and sell your product or service
Markup This is the fixed amount or percentage you plan to add for profit, in addition to the COSTS
Product Price Based on the pricing factors you identified in the previous step, either add or multiply the markup to the total costs to calculate your product price Note whether this is the wholesale or final retail price and list both if appropriate
Discount Consider the fact that you will likely want to offer a discount at some point, whether your product is priced for the wholesale or retail market in the final column apply a percent or fored dollar discount to your product price
Review the pricing worksheet and in four or five sentences reflect on how your pricing strategies worked when applied to your product or service what worked well or what will you need to change.

Answer 1

[AI-generated answer — Bot GPT 3.5]

Risk Factors:

- Supply and demand: Our tech company may face risks related to fluctuations in supply and demand for our products. If demand exceeds supply, we may have to increase prices to manage demand. Conversely, if supply exceeds demand, we may have to lower prices to move inventory.
- Competition: Our pricing may be affected by the actions of our competitors in the tech industry. If competitors lower their prices, we may have to adjust our own prices to stay competitive. Conversely, if competitors raise their prices, we may have an opportunity to increase our prices as well.
- Economic conditions: Economic downturns can affect consumer purchasing power and demand for tech products. In times of economic uncertainty, we may need to adjust our pricing strategies to remain financially stable.
- Government regulations: Changes in government regulations, such as tariffs or taxes on tech products, can impact our pricing. Compliance with regulations may also add costs to our pricing structure.

Pricing Objectives:
Our pricing objective is to maximize profits while remaining competitive in the tech market. We aim to strike a balance between generating revenue and offering value to our customers. Additionally, we will consider market share and cost coverage as secondary pricing objectives.

Pricing Worksheet:

| Product/Service | Cost of Goods | Cost of Sales | Markup | Product Price | Discount |
|--------------------|---------------|---------------|--------|---------------|----------|
| Product A | $50 | $20 | 50% | $135 | 10% |
| Product B | $70 | $30 | 40% | $147 | 15% |

Reflection:
Our pricing strategies worked well in ensuring that we cover our costs and earn a modest profit while staying competitive in the tech market. By setting a reasonable markup and offering discounts, we were able to attract customers and generate revenue. In the future, we may need to closely monitor supply and demand trends, as well as adjust our pricing based on changes in economic conditions and government regulations.