Pricing Products 1. Promotional pricing generates a sense of urgency and excitement. However, recognizing the dangers of this pricing approach, your boss has asked you to design an alternative pricing strategy that will generate the greater long-term sales and customer loyalty. What pricing strategy do you recommend? Will this strategy work as well as promotional pricing in the short term? Explain. 2. You are an owner of a small independent chain of coffeehouses competing head-to-head with Starbucks. The retail price your customers pay for coffee is exactly the same as Starbucks. The wholesale price you pay for roasted coffee beans has increased by 25 percent. You understand that you cannot absorb this increase and that it must be passed on to your customers. However, you are concerned about the consequences of an open price increase. Discuss three alternative price-increase strategies that address your concerns. Application: 1. If total amount of order =P87,821.75 Start of selling season- November 15, 2010 Date of order- September 15, 2010 Date of invoice- September 29, 2010 Date of shipment- October 28, 2010 Date of arrival- November 2, 2010 Determine respective amount of discount, amount payable and maturity date for the following datings: a. 12/6 Receipt of Goods, net 55 days b. 10/8 Receipt of goods c. 8/10 End of the month dating d. 6/12 indirect dating e. 5/10 season dating