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    Promotion: Accounting Staffing Services

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    For your service, taking account of the marketing activities previously described and allowing for your time to provide the service and any ancillary costs, assess the OVERALL COSTS of your business which you would take into account in setting prices.

    PRICE SETTING: How will you set your price(s)?


    PRICE DISCRIMINATION: Will you vary your prices by segment? If so for whom and what will they be?

    What will your expected PROFITS be? Show calculations for your expected profits over a reasonable time period. Refer to previous sections where you have stated performance goals.

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    Solution Preview

    Please see the attachment.PRICE SETTING:

    In the market for accounting staffing recruitment agencies the rates charged range from 7% to 12% of the annual salaries of the person recruited. I will keep my rate at 6% of the annual salary of the employee selected. The average salaries of CJPAs are close to $50,000 per annum. I will get $3,000 per applicant placed. My target during the first year is 40 placements which will give me total revenues of $120,000.
    The overall costs that I have to incur are as follows:
    COSTS $
    Office Rent 30,000
    Utilities 5,000
    Phone/Internet 5,000
    FIXED COSTS 40,000
    Communication Costs 10,000
    Cost of Stationery 6,000
    Courier costs 4,000
    TOTAL COSTS 60,000

    These costs are taken into account in my price ...

    Solution Summary

    The answer to this problem explains pricing of accounting staffing services. The references related to the answer are also included.