Gauge Your Prices

watch video at http://taragentile.com/coffee-pricing/

• Value is subjective - means different things to different people

• Value is based on each person's perception of the benefits of purchasing the product or service

• Tangible benefits: physical characteristics (size, shape, color)

• Intangible benefits: what the product or service allows you to do or feel

• Fixed costs: expenses that stay the same no matter how much of the product is being produced

• Variable costs: expenses that change along with the amount of

  production.

• Total Cost = ticket price + associated costs

• Associated costs (gas, parking, food, drinks, programs, and souvenirs etc.)

• Are you just trying to cover costs and make a small profit?

• Are you trying to create a certain image?

• Are you trying to compete?

What are the goals of the good/service?

Pricing Objective Posters