Cowgirl Chocolate Market Acceptance Assesment

493 Words2 Pages
COWGIRL CHOCOLATE MARKET ACCEPTANCE ASSESMENT 1 . The suggested retail price and wholesale prices of Cowgirl Chocolates products are displayed in Exhibit 2 (p . 491 ) along with the product and packaging costs . Based on this information , discuss the relative merits of using a cost-based , demand-based , or competition-based pricing method .COST-BASED PRICING : Everything in the business industry is equivalent to a certain amount . Understandably , such process in pricing is carried into consideration by almost all entrepreneurs . When they decide on the price of their products , they first calculate the cost expenses of the production of the said items or services . For the Cowgirl Chocolates ,coming up with a price in a cost-based pattern would mean a decrease on certain expenses that the company undergoes with regards the products that they release in market which includes packaging and the amount of raw materials used to make the chocolate products of the company .DEMAND-BASED PRICING : If the products are in demand , the price of the items could be safe in terms of increase . However , if the demand for the product is low , it is not that easy to decide when the prices are supposed to increase . This is the reason why creating alternative products for the company is necessary . Even though the company is focused on promoting spicy chocolates , it should always create an alternative to cater to the needs of those who might not like the said type of product .COMPETITION BASED PRICING : What other products are in the market and what does the company product have in advantage ? The good points as well as limitations of the produced items should be carried into consideration as the pricing is being decided upon . For cowgirl chocolates , most competition in the industry comes from the businesses producing sweet chocolates . An advantage maybe is that the Cowgirl

More about Cowgirl Chocolate Market Acceptance Assesment

Open Document