Given the market and product line options for this new business, what kind of pricing strategy do you think makes the most sense for the business?

Fred and Larry Butts are excited and a bit nervous about their new wine and specialty store that is scheduled to celebrate its grand opening in about four months. Fred and Larry have spent the past year choosing a location for their new venture and completing a market research and business plan.
The couple purchased a lakeside parcel of property in the heart of the lakes region of upstate New York. Their newly built structure includes a 7,200-square-foot retail showroom (72 ⫻ 100) with a below-ground wine and inventory storage area of the same dimensions. The retail showroom is very elegant, featuring wood floors, a large number of beautiful windows, many of which overlook a scenic lake vista, bright stucco walls adorned with works of art and a high-end surround-sound system. The building is located on a busy road, and the parcel includes plenty of room for parking and possible building expansion.
Fred and Larry’s market research indicates that the area is evenly divided between an upper-middle-class population of second home seasonal and year-round retirees, a white-collar population of insurance and banking people, and a blue-collar population of factory workers. The total population of the multitown region nearly doubles between Memorial Day and Labor Day each year (from 50,000 to 100,000⫹), as there are a large number of summer cottages and campgrounds that surround the many small lakes within their market radius. The region also enjoys a “leaf-peeping” tourist season in the fall and a pass-through and nearby ski market during the winter months.