Week 6 Assignment - Feasibility Analysis

Week 5 Discussion

Please respond to the following:

· Using the textbook, Strayer Library , and the Bachelor of Business Administration Library Guide , analyze pricing strategies for established products and services. Next, select and explain the pricing strategy you would use for a business. Within your response, you should also identify two objectives this strategy seeks to achieve.

Be sure to respond to at least one of your classmates’ posts below:

Hello everyone,

Pricing can be a tricky subject and it depends on the product or service you are offering. Big box retailers like a Walmart, can advertise and charge everyday low pricing and get away with it even when it might not be the lowest price.  I really like the bundling pricing structure but for this discussion I will use subscription pricing. Subscription pricing is when a customer pays on a regular basis for a service or product. I see more businesses doing this now, like subscription boxes.  With this pricing structure, I would hope to achieve repeat customers, the customer would never have to remember to pay for a product because it will be recurring. And second, this would give a business an opportunity to introduce new items each month and instead of advertising to all customers, the items would be available in the subscription boxes. This would make it seem like it’s a special deal and a limited number of boxes/items would be available each month. 

Week 6 Discussion

· Using the textbook, Strayer Library , and the Bachelor of Business Administration Library Guide , examine and explain two sources of outside equity financing and two sources of debt financing, that are available to entrepreneurs. Next, describe the source or sources you would use if you were creating a new company. Explain your rationale.

Be sure to respond to at least one of your classmates’ posts Below:

Hello everyone,

There are many sources of financing available to entrepreneurs. For outside equity financing, two examples are: angel investors – are basically people who invest in businesses that could yield a high return on investments. These individuals are wealthy and looking to invest in newer businesses. Another example is crowd funding – is where you can sell shares of your business versus pre-selling your products or services. An example of a crowdfunding site is Kickstarter and the very popular Go Fund Me. In the area of debt financing, two examples are: bank loan – the most common, where a business owner could apply for a loan at the bank they have an account at. Another example is customer funding. This is where the customers pay upfront and get their products and services later.

I would use a bank loan for creating a new business. The other options may not work for the type of business I want to launch. Also, if I could find a generous angel investor that would be great but if not, a loan through my bank is the approach I would take.