How To Determine The Price Of The Samsung A73 Phone In Nigeria

The Samsung A73 smartphone comes with 32GB of internal storage and 2GB of RAM. It features a 5-inch touchscreen display with 480 pixels by 854 pixels at 187 PPI density. The display has Corning Gorilla Glass 3 protection and an oleophobic coating on top to reduce smudges and make it easier to clean the display screen with any cloth.

The Demand Curve

Consumers need products, but companies only create them if they can make a profit. Profits are driven by pricing and production decisions and are ultimately limited by consumer demand for your product. When you set a price for a good or service, you determine where to place that good on an imaginary demand curve. The higher you set your price, the more of that good consumers will want (because it’s more expensive) and less of it they’ll buy (because there are cheaper alternatives). At some point, prices become so high that fewer people buy it—and your profits go down because you couldn’t reach as many potential customers as you could have with a lower price.

Marginal Revenue and Marginal Cost

Marginal revenue describes how much money an extra sale of a product or service brings in. On the other hand, marginal cost describes how much more it costs to produce another unit of that product or service. Typically, businesses calculate their marginal cost and then use that figure to determine what price they should charge for each additional unit sold. To make sure your pricing strategy doesn’t leave money on the table—or rather, in your competitors’ pockets—you need to be able to pinpoint your own company’s marginal cost. If you don’t know exactly how much it costs you to produce another output unit, you can’t accurately set a price for it. If you want more info about the Samsung A73 price and detailed review, so check on Gadget Stripe. 

Pricing Using Marginal Revenue, Marginal Cost, Average Revenue, and Break-Even Point
A business can use many pricing models to determine how much to charge for a product. Some of these models, such as marginal revenue, marginal cost, and average revenue per unit, are widely used by businesses. Others, such as break-even point analysis and contribution margin, may be less familiar. Understanding each model is important for a business person because each model tells you something different about your customers’ willingness to pay. Ultimately, your goal should maximize profit on every sale; some models help you do that better than others. After reading this post, you will understand how multiple pricing models work in practice to make an informed decision when choosing which model is right for your business. (Note: Charts and graphs are included.)

Exercise 1 – Hamsik Company

You are selling a used laptop that had come to you through a friend. You check with your IT expert and find out that it is still in perfect working condition, but there is no guarantee. In that case, you should let your customer know about it before making any promises. Another way of doing it is to let them research how reputable or popular these companies are in your area to be certain of their quality.

Exercise 2 – Infotel Corporation

Determine your target market in terms of income, gender, marital status, geographic location, etc. Look at how Infotel has segmented its market and how you can apply that to your market segments. You might also want to look at marketing research (check out Chapter 5 of your text) to see how Infotel applied or failed to apply that type of research. Please consider all of these factors when deciding on a price for their product and justifying it.

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