Pricing Tactics Manual Information Page Final Submission ✓ Solved

Pricing Tactics (Manual) Information page Final Submission

Ice Factory, a sno-cone stand, opened on the perimeter of campus two months ago. Initially, Ice Factory selected a pricing objective (strategy) that focused on maximizing volume and revenue as well as encouraging a greater volume of purchases. After two months of selling sno-cones to faculty, staff, and students, business is booming. Ice Factory has decided it is time to evaluate different pricing tactics that will generate additional sales from current customers and also sales from new customers. In one or more fully formed paragraphs, identify the pricing objective (strategy) used when Ice Factory first opened, then list five pricing tactics Ice Factory can use to generate additional sales, and finally explain in detail how Ice Factory can implement three of those tactics to arrive at a final price for customers.

Paper For Above Instructions

When Ice Factory first opened, its pricing strategy was primarily focused on maximizing volume and revenue. This objective is vital, especially for new entrants in the market, as it allows them to attract a larger customer base quickly. By offering competitive prices, Ice Factory aimed to increase foot traffic and boost sales through higher customer engagement and purchase frequency.

To generate additional sales from both current and new customers, Ice Factory can implement several pricing tactics. Here are five effective strategies:

  1. Bundle Pricing
  2. Seasonal Discounts
  3. Loyalty Programs
  4. Promotional Pricing
  5. Dynamic Pricing

Implementing these pricing tactics will allow Ice Factory to create a more attractive pricing structure for customers. In this report, we will discuss how Ice Factory can implement bundle pricing, loyalty programs, and seasonal discounts to arrive at a final price that encourages optimal sales.

Bundle Pricing

Bundle pricing involves offering multiple products for a single, lower price than if they were purchased individually. For Ice Factory, this could mean creating a combo deal of a sno-cone, a drink, and perhaps a snack at a discounted rate. For example, the business could market a bundle that includes a small sno-cone, a bottled drink, and a small bag of candy for $5 instead of selling each item separately for $8. This tactic could not only increase sales volume but also enhance customer satisfaction by providing perceived value.

Loyalty Programs

Loyalty programs encourage repeat purchases by rewarding customers for their continued business. Ice Factory can develop a program where customers receive a punch card with each purchase. After ten sno-cones purchased, customers could receive a free sno-cone. This strategy not only incentivizes customers to return but also increases the likelihood of them sharing their experiences with friends, potentially attracting new customers. To implement this effectively, Ice Factory should ensure the program is well-promoted both at the stand and through social media channels.

Seasonal Discounts

Seasonal discounts provide opportunities for Ice Factory to drive sales during peak times or special events, such as back-to-school season, holidays, or local campus events. For instance, offering a special discount (e.g., 20% off) on sno-cones during the first week of school can help in attracting students who are eager to explore new spots around campus. By carefully choosing the timing of these discounts, Ice Factory can create a sense of urgency and excitement, motivating customers to make their purchases quickly.

In conclusion, by implementing bundle pricing, loyalty programs, and seasonal discounts, Ice Factory can significantly enhance its pricing strategy to generate additional sales from current customers and attract new ones. Each of these tactics not only aims to increase sales volume but also enriches the overall customer experience, which can foster long-term relationships and encourage brand loyalty among customers.

References

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