ANSWERING QUESTIONS 3
Thereare several factors that need to be considered when pricing lawnservices to households in HRM. First, it is important to consider thelabor cost so as to recover all the resources and finances incurredin producing the final services such as the number of employees andtheir salaries. It is also important to consider the material cost.The material cost covers all the expenses incurred in buying theworking equipment’s. All the other costs such as transportationfees, advertisement, rental fees and employee discounts shouldalso beconsidered. To survive in the market, it will be necessary toconsider the pricing of other lawn services providers. I would nothave different prices for my lawn services.I plan to set a standardprice that will market my business to all households in the targetedarea.A standard price will help avoid issues with pricediscrimination. However, there will be discounts for loyal customersto ensure they do not seek services from my competitors.
TheCanadian Competition Bureau has a long way to go regarding pricediscrimination legislation. There is a wide gap between consumerprices in Canada as compared to the United States. The competitionAct needs to be amended to regulate multinational companies that havethe market power to charge higher prices for their goods and servicesin Canada compared to other countries that they operate.
Oddand even pricing is a tactic that uses numeric value to change theperception of a customer about pricing. For instance, instead ofcharging $30, it is advisable to charge $29.95 since it changes acustomer’s perception that the price is in twenty ranges and notthirty ranges. In odd pricing, the price ends in odd numbers such as$1.93 or $2.97. In even pricing, the prices end in even numbers ortenths such as $0.40, $2.50 or $10.00.