Pricing is one of the most important, yet difficult, aspects for a business. How do you set your prices? For this discussion, I want you to set the price of this flower arrangement. It has 24 purple mums, 16 orange mums. 16 mini red mums, 10 unbloomed green mums, one pink rose, 5 birthday candles, on a plastic stand. Cost to produce with packaging is $9.78. Standard delivery is $10 for next day service. What other facts do we need to know before you can even think about pricing?

First, watch this short video

https://youtu.be/CiQ6rBTrkC0

Segment and choose a target market. Explain why this is the market and why the other ones are not.

1. Use one of the pricing strategies discussed in the textbook.
2. Explain why and how you arrived at your price
3. Explain how your target market will react to the price and why. This must be based on what you learned about consumer behavior not just an opinion. In other words, you cannot simply price the arrangement at $9.99 and target low income and say they will by it because that's all they can afford. That is opinion.
4. Include detail about the research conducted to arrive at the price - you cannot set price in a void. it must be founded in research.

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