Assignment: Pricing Strategy Case Assignment

Review the "What's the Right Price" case on pages 382-383 in the Essentials of Entrepreneurship and Small Business Management text. Complete each section below. Be sure to cite your sources when necessary (including all uses of the textbook).

1. Product Pricing and Company Image

Explain in 3-5 sentences, why so many entrepreneurs underprice their goods and services, especially when they first get into business.

Discuss in 3-5 sentences, the connection between the prices a company establishes for its goods and services, and the image it creates for the company.

2. J. Hilburn's Pricing Strategy

Describe the advantages and risks associated with J. Hilburn's pricing strategy.

What advantages does J. Hilburn's pricing strategy create for the company? What risks are associated with the company's low-price strategy?

3. Pricing Advice

Visit the website for J. Hilburn. In 3-5 sentences, what advice on pricing can you offer Hil Davis?

Discuss in 3-5 sentences how Davis should implement your pricing suggestions.

4. Brick-and-Mortar Comparison

How might your pricing change if you were a brick-and-mortar retailer versus an online retailer?