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Pricing Strategy for Toyota Corolla

The part of the assignment is as follow and is for a Toyota Corolla:

Perform a competitive pricing analysis. What are your competitors charging for your product or service?
Prepare a break-even analysis for your product or service after considering the costs.
Determine a price range for your product or service after considering the costs, competitive price points and doing a break-even analysis.

Decide upon the pricing strategy you would like to follow to beat the competition. Provide the rationale for your decision.

Solution Preview

I had to make a few assumptions with this assignment.

1. Perform a competitive pricing analysis. What are your competitors charging for your product or service?

Local pricing for a 2009 Toyota Corolla range as follows:

Dealer 1: MSRP=$18754 - ePrice $17088(TT&L not included)
Savings of $1666.00 9.11% off MSRP

Dealer 2: MSRP=$18408 - ePrice $16604(TT&L not included)
Savings of $1804.00 9.02% off MSRP

Dealer 3: MSPR=$18404 - ePrice $16492 (TT&L not included)
Savings of $1912.00 10.39% off MSRP

Dealer 4: MSRP=$18644 - ePrice $16870 (TT&L not included)
Savings of $1774.00 9.52% off MSRP

Dealer 5: MSRP=$18271 - eprice $16163 (TT&L not included)
Savings of $2108.00 ...

Solution Summary

Pricing Strategy for Toyota Corolla: competitors, break-even, price range & points

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