Marketing Pricing process and decisions paper

TARGET MARKET: Upscale Flourishing Families

What is our revenue projection to meet plan? Assume revenue of $1.5 Million in YR1, $3.5 million in YR2 and $15 million in YR3.

What is our product development budget? The budget does not contain a separate product development line item. Each area of the company participates in the process (accounting, finance, operations, QA, etc.) and funding comes from their operating budgets. Larger companies have Product Development Centers often associated with their Strategic Business Unit and have large budgets to meet the needs of the organization’s strategy. We are small.

How much should the finished bar cost the customer? The End User? Research. Must be based on target market needs and ability to pay $$$$ in sufficient numbers, product cost and profit goals & requirements.

What is the targeted Profit needed to go forward? 18.5% or more. You will develop your own P&L based on a form provided.

Where do you find product cost information? Use NAICS to find vendors and contact information for product pricing information as well as the internet for secondary research.