AB 209 Unit 5 Assignment Supply Chain (Retailing of Food Supplements) AB 209 Unit 6 Assignment Pricing (Liquor Store) | Page 2

Describe what your business will be selling; Describe the products
and/or services (name 3–4 main ones) and the value proposition. Based
on your research of the competition, describe the competition’s
product/service and provide the price. Then describe the pricing
strategy you will
use and how the competition’s prices have affected your
competitiveness in the marketplace.
Pricing Strategies
Penetration Pricing = Pricing below normal, long-term price to gain
market share.
Skimming Pricing =Pricing an item high in the short term to capture the
prestige market?helps torecover start-up costs.
Variable Pricing/Dynamic Pricing Strategy =Lower pricing for certain
customers based on their abilityto pay. (Amazon uses this type)
Price Lining =Different quality level product of a certain type are priced
by category. Ex: Women’shandbags?Designer bags $300, name brand
$200 and all other $100.
Market Pricing =pricing based on the market- what people are willing to
pay only works if there is verylittle or no competitors.
Explain whether you will buy on credit and the kind of credit terms you
expect from your suppliers and why.
Then explain your customer credit policy; explain whether you will
extend credit to your customers and why or why not. If you will extend