Question
Oelrich Builders builds townhomes in a new subdivision just outside of Alachua. Land and labour are cheap, and competition among developers is fierce. The homes
Oelrich Builders builds townhomes in a new subdivision just outside of Alachua. Land and labour are cheap, and competition among developers is fierce. The homes in the subdivision
are identical to one another, but buyers can upgrade features by paying the difference.
Which approach to pricing should Oelrich Builders emphasize? Why?
Oelrich will need to emphasize a( cost-plus or target-costing ) approach to pricing. Because the tract homes are( not unique and face or unique and do not face ) stiff competition, Oelrich will (have a lot of or not have much ) control over pricing.
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