Suggested Product Retail Price
Service Fee
CD Record $8.99 - 18.99 per CD
Single Digital Download $0.99 - 1.29 per download
Album Digital Download $0.99 - 12.99 per download
Artist Brand T-Shirt $6.00 - 30 per t-shirt
Concert Ticket $10 - 45 per ticket
Record Production Cost
Costs Percentage* Cost Per Dollar*
Musicians Union 1% $0.16
Manufacturing/Printing/Packaging 5% $0.80
Publishing Royalties 5% $0.80
Retail Profit 5% $0.80
Distribution/Transportation 6% $0.96
Artist Royalty 10% $1.60
Label Profit 15% $2.39
Marketing Promotion 10% $1.59
Label Overhead 18% $2.88
Retail Overhead 24% $3.84
Total = 100% $15.99
(*) costs and percentages based on industry standards, are subject to negotiations with the artist, manufacture, distributor and retailer.
Service Fees
Devotion competes for quality, customer service and commitment. Fees are based on industry acceptance or hourly rates being offered lower than competitor prices; all others are subject to negotiations.
Service Fee
Booking 20% of gross income
CD Replication $0.65 per hour
Concert Promotion
Domestic Publishing
International Publishing
Live Sound Management $75-120 per hour
Mastering*
Media Printing
Music Video Production
Recording and Engineering* $25-60 per hour
Personal Artist Management
Personal Business Management
Song Production
Song Writing
T-Shirt Merchandising* $2.70 per t-shirt (*) Devotion intends to provide the service in the future.
7.3 Company Sales and Purchasing Policies
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When the organisations are pricing each item they allow for a reasonable amount of work to be required.
Prices of the different products and services of the organization should be market specific. The economic capability and disposable income of clients should be put into consideration in setting prices for the products and services offered by the organization. By matching prices with the economic capability of a people, it would be much easier to for customers to access the products and services without straining or having to compromise and going for other products of lower quality (Donna, 2012).
|Discopress offered mass production of CDs, Dvds, video games. |Discopress only did on demand manufacturing of CDs till date. |
Pricing is a relevant issue in procurement at all levels. Individuals purchasing the commodities of an organization should receive clarity on pricing. There is confusion in this
Competition within the industry as well as market supply and demand conditions set the price of products sold.
When trying to determine the correct price, a number of factors must be considered: the market and its segments, the size of each segment, the ability to reach each segment, what distribution channels to target, whether to vary price by segment, the usefulness of promotional offerings, and whether the goal is to skim or penetrate each market.
Demand for the product is determined by many factors, like pricing, quality, advertising and distribution.
Now that the initial startup phase of our company is complete, our team of Analysts has determined what we have deemed reasonable costs, considering that our definition of “reasonable” aligns with yours. In order to defend our stance on what we feel is reasonable, we have considered the nature of costs, such as air travel for business meetings and the use of our high quality materials, by researching the market for affordable, high-quality materials and have put standards in place to keep air travel valid for these government contracts. With the understanding that although the nature of the cost may be considered acceptable, the amount of the cost may not meet standards when it comes to costs defined as “reasonable” (Murphy, John Edward; Guide to Contract Pricing, pg. 47). With this in mind, we continue to research the market to find adequate material at a much lower cost. We have used this data to create what we feel is a cost that would not and should not exceed what any prudent person would pay in a competitive business environment. We are aware of the competition and have made it a strong incentive of ours to save on costs for the items that we are providing to you. Allowability of our costs is guided by the 52 generally applicable cost principles that are based on specific laws and policies (Murphy, John Edward; Guide to Contract
For the customized products: we need to calculate the total amount of cost of ordering, production and delivery. We estimate the price of these products should be twice higher than our usual products. (I just guess this price thing, you guys decide it….)
Archer’s interest in either position will depend on how strongly she feels about not traveling or if she is motivated by money. Her potential power is greatest before she makes her decision. She will keep a lot of this power once her salary has been determined. Kessel should continue to go after Archer. If he can get her to take the position, his reputation will be raised. She has great marketing abilities which would be a huge benefit to him. Kessel should offer Archer the most promising salary compensation package that he can while staying within his budget. The compensation package should include non-monetary resources such as an office with a great view or a flexible schedule.
Today’s highly competitive business world forces companies to create different tactics and relatively rely on multiple pricing strategies to conduct business.
Competition within the industry as well as market supply and demand conditions set the price of products sold.
The strategy for setting a product’s price often has to be changed when the product is part of a product mix. In this case, the firm looks for a set of prices that maximizes its profits on the total product mix. Pricing is difficult because the various products have related demand and costs and face different degrees of competition.
Another factor that we need to keep in mind is the cultural and economic realities of these marketplaces and consumers while pricing our products. Let us begin with the pricing for the European Union market Spain. This is a rich market which is centered around good quality and ready to spend the money asked for
The process in which organizations determine what they will obtain in exchange for their products is called pricing. Some significant factors for pricing include Market conditions, competition, market place, cost of production and product quality.