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WolfWear. Fatima Abdel-Gwad Moncerrat Avila Steven Summers. This is you w ithout Wolf Wear, mere Cubs. This is you with Wolf Wear, true Timber Wolves!. Customer’s Need. Ms. Hanzel Wanted us to propose concepts for a new startup company WolfWear company name.
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WolfWear Fatima Abdel-Gwad Moncerrat Avila Steven Summers
Thisis you without Wolf Wear, mere Cubs.
This is you with Wolf Wear, true Timber Wolves!
Customer’s Need • Ms. Hanzel • Wanted us to propose concepts for a new startup company • WolfWear company name
Solution to Customer’s Need • Create a pricing model • Different quality and price levels • Design cost
What’s Next? • Pricing Model example of a hoodie • Graphs show the gross income and units sold • Increased unit and design cost by 10% • Decreased unit and design cost by 10%
Design Costs and Prices • Slope Intercept Form: y=mx+b • Example Equation: y=25x+20 X is equal to the number of units sold The 25, or m, is the unit cost The 20, or b, is the design cost
Value Pricing Model Gross Income Equations: Y=25x Y=25x+20 Y=25x+22 Y=25x+18 Y=27.5x+20 Y=22.5x+20 Unit cost Unit cost plus design cost 10% increase in design cost 10% decrease in design cost 10% increase in unit cost 10% decrease in unit cost Units Sold
Standard Pricing Model Gross Income Equations Y=30x Y=30x+20 Y=33x+20 Y=27x+20 Y=30x+22 Y=30x+18 Unit cost Unit cost plus design cost 10% increase in unit cost 10% decrease in unit cost 10% increase in design cost 10% decrease in design cost Units Sold
High Pricing Model Gross Income Equations Y=35x Y=35x+20 Y=35x+22 Y=35x+18 Y=38.5x+20 Y=31.5x+20 Unit cost Unit cost plus design cost 10% increase in design cost 10% decrease in design cost 10% increase in unit cost 10% decrease in unit cost Units Sold
Conclusion • Value Pricing-$25 • Standard Pricing-$30 • High Pricing-$35 • Design Cost-$20 • Without Wolf Wear, you’re just cubs.