Question

Determine how you would assess demand for and the cost to produce your product or deliver your service and establish a price. Provide a rationale to support your response. Describe a situation that would require you to adapt the price of your product or service. Consider the impact of government and private payers on your pricing strategies. Provide specific examples to support your response.

Answer 1

answer-

Determine how you would assess demand for and the cost to produce your product or deliver your service and establish a price. Provide a rationale to support your response

to assess the demand for my product or service, i would reaserch the market like potential customers who are likely to buy my products or services, market trend means if my product is in trend or outdated, competitior like is there any competitor to my products/serivces.

for example- if i sell energy drink then my potential customers would be healt conscious people, gymmers, racers, atheletes etc. this energy drink is also in trend as people are getting more & more health conscious as well they need enegry to work daily.competitors are everywhere some products have less while some have few.

to assess the cost, i would see the cost to purchase the raw materials, cost to labour, cost to production, cost deleiver & other indirect cost then i would set the price as per the market condition & government rules & regulation so that i would earn the enough share of my profit.

for example- if cost to product a can of energy drink is $1 after combining all cost & tax is $0.1 then pricing would be done seeing the price of competitors if competitor charges $2 then i can charge $1.99 or $2 or $1.5 to outrun the competition.

there are many situation where a company has to adapt the price of thier products/serivces cause of following factors-

1. competitors is one of the main reason to adapt or change the price. for example if competitor adopt penetration pricing to enter into the market then i have to change the pricing to Competitive pricing—setting a price based on what the competition charges.
2. governement is also a factor which can be poistive or negative for pricing. for example- governement increases the tax on products then prices would increase & vice versa.

* above answer is written in my own words.hope this answer would help you.good luck & rate.