Most businesses’ priorities are to maximize their profits and increase their value. However, for Amy, her main objective is to make her products affordable to everyone. In addition, she wants to satisfy her customer needs and at the same time enjoy her needs as well. Amy used several methods to evaluate the demand for her products in the area. For instance, she surveyed the demographic patterns in the community. Amy considered the average income of the households within the area, examined the sizes of the families and the schools around the area. She went ahead and paid attention to the affordability of her products to schools going children and other middle-class groups. Amy evaluated the demand for her products by considering the people who commute through the area she was going to set up her shop.
To maintain a good customer base, several factors must be considered when pricing the products. First, one has to consider the cost. For instance, Amy comes up with the price of each item depending on the cost of ingredients and quality. Pricing depends on what consumers are willing to spend. Amy has come up with a price point to meet the requirements of each customer in her shop. When Amy was evaluating the demand, she learned the demographic characteristics of the area around her shop. Consequently, when pricing her items. She has to consider what each group of people wants and what each can afford. She mentioned the school-going children who come to her shop. When pricing the candies, is her responsibility to ensure all parties’ needs are met.
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