You were just hired by a struggling Country Club to help turn around the business and get the it back to protability. The business has been experiencing many months of losses which, according to the owners, is a probable consequence of an outdated membership pricing strategy.

The owners asked you to look at the following economic data from a market research rm, which is split between three groups: Retired Community, Students from a local University, and Professionals.

Note:For the data see the two attached pictures.

Questions Asked:

After analyzing the data above and discussing the objectives with the rm owners, you learned that they would like for you to come up with a pricing strategy incorporating some or all of the following characteristics:

? Membership Plan (annual)

? Daily passes

? Weekend passes (3 days)

? Monthly passes (30 days)

What is your recommended pricing strategy1 assuming no capacity constraints? Does your answer change if you think you may be at capacity with your new plan? Explain carefully.