Customers, costs, competitors, cost-plus formulas, and target-costing procedures all play a role in the pricing of goods and services. Sometimes the pricing process is relatively straightforward; on other occasions, it is more complex. The preceding factors and the procedures followed often vary from one business to the next.

Required Form a team with three other students in your class and visit the manager or sales manager of a business:

big, small, retailer, wholesaler, manufacturer, service business. Determine the relative significance of customers, costs, competitors, cost-plus formulas, and target costing in the firm’s pricing methods.

What approach does the manager use when (1) the good or service is new, unique, and untested in the marketplace and (2) the manager has little knowledge on which to base a decision? What has been the manager’s biggest success and failure in pricing? Submit your findings to your instructor in a memo or email with an attached table or diagram that summarizes your findings.