Your firm has based its pricing strictly on cost in the past. As the newly hired marketing manager, you believe this policy should change. Write the president a memo explaining your reasons.
Although company ABC has been successful with their pricing strategy in the past it is my recommendation to institute a new pricing strategy that will increase sales and margin. Here are my suggestions:
- All new products should be introduced at a low introductory price. I would suggest we look at our competitors' prices and meet or beat the national brand leader sales pricing in the category. I've looked at the costs of our products in comparison to our competitors' sales pricing (excel file attached) and we could ...
This detailed solution is a memo to the president of a company explaining the reasons a firm should no longer base its' pricing strictly on cost. It includes examples.