In my second investigation, I am going to recommend a promotional strategy for Jennie and to justify a suitable pricing strategy which she should use if the clothing shops were to open up in Leyton and also telling Jennie the relevant information needed to do so.
First, what is the definition of the price? Price is the process in which a business sells their products or service. It is the only element in the market mix such as the products, place and pricing, which brings in money to a business or a company.
It is very important for any business in any area to consider how much they will sell their products or service. Since Jennie is opening up her business in East London; Leyton, she needs to consider putting her prices low, since people in Leyton earn a lower income than other parts of the London.
I …show more content…
One example she could use for her business; suit, tuxedo, jeans, and tie times 3 or 4 as a men package, once added do a bit of a discount that is suitable for this offer.
Differential pricing
Differential pricing is a strategy where a business charges different prices based on products for different groups of people. One example relating to Jennie 's business is that she could charge kids extra for the rented clothes as children are more likely to get dirt, whilst adults are not.
There are advantages and disadvantages of using this method.
The advantages are that when strategies such as coupons or when sales are happening, the discount give the potential customer a chance to try the clothes. If the customers like what they experience, the customers are more likely to rent the clothes at the full price even if the sale is not happening.
The disadvantage is that the profits in the discount sale will drop since you will receive the full amount you normally charge for the
First, what is the definition of the price? Price is the process in which a business sells their products or service. It is the only element in the market mix such as the products, place and pricing, which brings in money to a business or a company.
It is very important for any business in any area to consider how much they will sell their products or service. Since Jennie is opening up her business in East London; Leyton, she needs to consider putting her prices low, since people in Leyton earn a lower income than other parts of the London.
I …show more content…
One example she could use for her business; suit, tuxedo, jeans, and tie times 3 or 4 as a men package, once added do a bit of a discount that is suitable for this offer.
Differential pricing
Differential pricing is a strategy where a business charges different prices based on products for different groups of people. One example relating to Jennie 's business is that she could charge kids extra for the rented clothes as children are more likely to get dirt, whilst adults are not.
There are advantages and disadvantages of using this method.
The advantages are that when strategies such as coupons or when sales are happening, the discount give the potential customer a chance to try the clothes. If the customers like what they experience, the customers are more likely to rent the clothes at the full price even if the sale is not happening.
The disadvantage is that the profits in the discount sale will drop since you will receive the full amount you normally charge for the