Distributing and pricing cc licensed ( BY NC SD ) flickr photo by williamcho: http://flic.kr/p/6RNhKR

Quiz • Closed book/closed notes • Put away phones until quiz is over • You may collaborate with your team • You are responsible for the answers on your quiz • You do not have to choose the same answers as your team

marketing channels • wholesalers • retailers • direct

Why not buy directly from manufacturer? CC licensed (BY-SA) wikipedia photo by Ryan Hildebrand https://commons.wikimedia.org/wiki/ File:2017_Lincoln_MKZ.jpg

What value do intermediaries add? • match buyers & sellers (fewer transactions) • provide market information • promotion & sales support • gather assortment of goods • transport & store goods • assume risks • provide financing

distribution strategy •exclusive • selective • intensive Service/cost

Supply chain management • Challenges? –Too much inventory? –Too little? • Electronic data interchange (EDI) • Vendor-managed inventory (VMI) • Bullwhip effect

flickr photo by Swift Benjaminhttps://flic.kr/p/9Tf88T shared under a CC (BY) license Near beer game http://forio.com/simulate/mbean/near-beer-game/run/

pricing strategy cc licensed ( BY NC ND ) flickr photo by Roadsidepictures: http://flic.kr/p/4hVtfA

flickr photo by

https://flic.kr/p/dgaFig shared under a CC (BY-NC-ND) license

flickr photo by improbcat https://flic.kr/p/5idoUS shared under a Creative Commons (BY-NC) license

flickr photo by pyntofmyld https://flic.kr/p/7Y2S4L shared under a CC (BY) license

flickr photo by Concavo Wheels https://flic.kr/p/jwdgBg shared under a CC (BY) license

flickr photo by Dave Pinterhttps://flic.kr/p/5KVmo4 shared under a CC (BY-NC-ND) license

Pricing strategies • Objectives? –achieve profit –build traffic –build market share –increase sales –create image

Pricing approaches • Penetration • EDLP • High/low • Loss-leader • Prestige • Skimming • Cost-based • Target costing • Demand-based • Odd

Breakeven analysis = ( − ) Fixed cost: $5000 rent/mo $5000 payroll Price: $4 Variable cost: $1