ICO Prof Dan
joeph2
the_prices_of_all.docxThe prices of All-round and All-round plus should be increased annually in
regression to inflation. Inflation should not outweigh the prices increase for All-round
because it is still our main product and has the best percentage. The price
for All-round+ should not be out weighted by inflation either, but be more careful in
how much the prices are raised. Fairly new products each year should stay closer to
inflation increase until the purchased percentage is at least 40 %.
Coming into the first period of our new company there were many uncertainties. We
Decided not to make any changes until we got an understanding of the game.
Our company’s
first three years was a good start for beginners. Allround was the only product we were
producing at the moment, and the main goal was to advertise the product out to the world.
Advertisements were successful from the start. We learned that investing a lot in advertisements
from the start to increase brand awareness; also, this investment made critical boost in our sales.
Ever since the third period, company’s stock price went up extremely high , our company did not
make any major changes.
We did not have an obvious pricing strategy at first. Unfortunately, Pricing could
have been increased at a more consistent pace, avoiding the drops in stock one through
three periods. It would have been promising to take advantage of the strong market share by
increasing price to maximize profit early on. Our ultimate goal and number one mission in
every period was to maximum the price that someone will be willing to pay for our product.
We wanted to keep the stock price raised every period to help see how well the company
was doing.
As periods advanced, more attention was paid to customer feedback
from multiple sources and a stronger purpose was applied to pricing decisions. In
addition, better analysis of the impact of pricing decisions to the results was engaged.
we often felt uncertain for increasing prices too much for Allright and
Allround+ since our target market felt that the products were effective. All round could
raise the price a bit and consumers were still willing to pay for the product.
