I need comment for each discussion that are attached. So, the total of comment are two comments.Each comment must be from 4 to 5 sentences.
first_comment.docx
second_comment.docx
Unformatted Attachment Preview
Supply & Demand Algorithm
Discuss how a similar “set your price” approach could be used for Heritage Doll
with Match my Doll product line.
Using the “set your price” approach for the Match my Doll Product Line, it would benefit
Heritage Doll. Since the clothing line is based on seasons, this approach can be applied.
As they reach each season (fall, spring, winter, summer) they can apply this approach by
increasing the prices using that pricing algorithm since it will be a higher demand
because the consumer knows the season is approaching and their child will want to have
the latest fashion for that season. As they steer away from the season they can drive the
prices down as in discount the outfits so that they can sell that inventory and still bring in
revenue so the demand is low. However, note if they monitor the sales on that discounted
clothing during off-season they can still use the set your price approach to drive this up as
there will also be a demand for to purchase the discounted items.
Design your own Doll product line.
By using the “set your price” approach this would benefit the Design your own doll.
Since this is a unique type of project, the company can set the price how they want. The
higher the demand and more unique the doll the higher the price they can charge. In this
industry, there would not be too many dolls that would have the same features as the
next, causing a higher demand in consumer consumption. By using the set your price
approach the company can raise the prices based on certain assumptions ( design,
delivery, specifics with each order) since this would be a unique purchase. In addition,
with R&D they can track times where in customers may be interested in making a
purchase and have not just yet or save their intended purchase, they can also apply the set
your price approach there by offering a discount if they purchase within this time frame
or maybe increase the price it can vary.
Discuss how a similar “set your price” approach could be used
for Heritage Doll with:
Match my Doll product line.
Design your own Doll product line.
The cost plus pricing technique would be used in order to determine
the price in both types of investment because this technique does not
require any historical record of the accurate fact sheet of demand
and supply. The need is just to set a specific percentage to the price
of each unit to get the amount of profit. Lets for example if 10% is
added to the cost of the unit then it will be known as markup. While
setting the price by this technique it should be kept in mind that price
should be competitive and cover all type of cost either business
generate huge profit or less. All new and old business wants to cover
their all cost and make revenue and for the sake of this purpose, it is
necessary that the selling price should be greater than the total
cost. (Luehrman & Abelli, 2010).
This method is very simple, justifiable and it also assures the profit
of contract. The is also some loopholes of this like the Heritage Doll
company has to ignore the competition, contract cost overruns and
also has to ignore the replacement cost. This method cannot be used
in the competitive market but the idea of Heritage Doll Company is
quite unique so there is not the strong competitor of these
innovations, so they can utilize it as the estimated outcomes of the
project is also positive. In the situation of contract, this method will
not lead towards downfall and more reliable to use in this kind of
investment.
Reference
Luehrman, T., & Abelli, H. (2010). New Heritage Doll Company
Capital Budgeting. Harvard Business School Brief Case, 1-8.
…
Purchase answer to see full
attachment
Recent Comments