- Discuss how your group determined the price of your product/s for the market. Please also reflect on the decisions you made before and during the market.
For our market, we made felt animal cup holders. When deciding our price on the product we made sure to include a margin of profit to make our $30 investment back. Our product cost $1.69 to make so we priced it at $3.99 for around a $2 margin of profit. We also included supply into our selling price so that we knew how much of the 16 products we needed to sell to invest back. Before the final price was decided we went from $2.99 up to $6.99 but we decided to meet in the middle of those two prices which gave us a 137% markup. During the market, we only changed our product price once and this time was when we only one product remaining so we phycological pricing tactic to say that because it was the only product left, we would price it highly as it is “limited”, we sold this for 4.99 so just $1 more but this still gave us some extra profit. For the market, we brought in lots of Christmas themed decorations included some lights that we hung in front of the table. We placed our products in the middle and then used the decorations on the outside. This was so that when potential buyers came up to the store, they saw colourful products in the middle and then when having more of a look around their eyes would also be drawn to the decorations and lights keeping their attention on our stall. When we were trying to attract customers, we found that if someone in our group knew a certain person’s name they should try and attract the customer because one they could call their name which would show the customer that they know their name and that they value them and, two a customer will know them so they will feel intrigued to know what so and so has made so that they could buy there product to show that they know and appreciate them. During the market, we sold all 16 products and made a $38.50 profit.
- If you were to go through the process of creating a market product again, what would you do differently?
I would after deciding the product I have chosen to make see how many units of that product we could make because my group could have made more but we spent too much time thinking to make different types of our product rather than just making what we could make the easiest and the most of. I think for our product we could have included some packaging or a type of item to hold it or something to keep It in. For our product, we could have included some cups to take along with them to hold it so they wouldn’t break, or we could have just included a simple paper bag but that might have cost us extra money that we might have not had. In terms of marketing, we could have asked our target audience if they would buy our product and how much they would be willing to pay. I also think in our poster and when we were telling customers about our product, we should have mentioned that it all goes to charity because this would have made more customers want to buy our product. After all, you’re getting a product while supporting someone.