I need to respond to my fellow classmate in 250-300 words in APA format with citing she wrote:
Consider that the “[p]roduct pricing strategy has a significant impact on a service company’s competitive edge,” (Xuemei, Malin, & Guangdong, 2017, p. 297). The service industry differentiates from the goods and manufacturing industry in the way the price is mainly the cost of payroll, rather than manufacturing the product. After reviewing the various pricing strategies, I decided that the meet-or-beat-the-competition pricing strategy would be most appropriate for my business of personal training. The meet-or-beat-the competition pricing strategy is great for service businesses since it “matches or undercuts” the prices of competition (Mariotti & Glackin, 2016, pp. 163-164). The key is for businesses to show their uniqueness and differentiation from competitors and be at an advantage to offer competitive prices.
By offering the best trainers in the area at competitive, but fair prices in concern to wages, as well as offering additional services like nutritional guidance and fitness classes, my business should be equipped to set itself apart. The average training session costs about $50 an hour, so my going rate will be $35 an hour with my trainers receiving $24 an hour. The typical training package will be $490 a month for 14 sessions. I am going into the business with $10,000 in working capital to help maintain the cash reserve until we break even, which would be when we sell at least 38.5 training packages to clients. Galatians 6:4 reveals the issues with comparison through, “But let each one test his own work, and then his reason to boast will be in himself alone and not in his neighbor,” (ESV). While this verse reveals the dilemma with consistent comparison, comparison can be healthy at times when it is used the right way, such as how Proverbs 27:17 details, “Iron sharpens iron, and one man sharpens another.
Mariotti, S., & Glackin, C. (2016). Entrepreneurship: Starting and Operating a Small Business (4th ed.). United States: Pearson Education, Inc.
Xuemei, Z., Malin, S., & Guangdong, L. (2017). Service Product Pricing Strategies Based on Time-Sensitive Customer Choice Behavior. Journal of Industrial & Management Optimization, 13(1), 297-312. doi:10.3934/jimo.2016018
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