Art Glass Studio Business Plan | Pricing Policy
PRICING POLICY
The owner's pricing policy is based upon her operating expenses and what she feels the market will bear. She has priced all of her products in the following manner. First, the owner needs to know what the bottom line production cost is on each item. She takes into account the cost of her materials, other variables, her fixed operating expenses, the time involved, and the hourly wage that she needs to receive to meet her personal expenses.
She then sets a suggested retail price, which is what she feels the item would sell for in a retail outlet. This is also the price the artist would sell the item for in her shop. If the item is sold on a consignment basis, the store's commission is subtracted from this retail price. If she sells the item on a wholesale basis, the price for which the item is sold to the store would be determined by that store's markup policy.
In doing her pricing research, the frequent complaint was heard from buyers...
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