Objective 4.04 Understand Marketplace Experience Foods II Enterprise Objective 4.04 Understand Marketplace Experience
Steps in Setting Price Determine pricing objectives: Consider your purpose in setting a price for your products. Study costs: Carefully examine all of the costs associated with carrying a product and selling it to consumers. Estimate demand: Research industry data and study past sales to estimate demand. Study the competition: While new or small business often have a difficult time competing solely on the basis of price, it is important to know what competitiors are charging for products. Decide on a pricing strategy: Select the strategy that offers the business the greatest potential for profit then monitor sales and related factors to determine when changes are necessary. Set your price: Once again, continue to monitor sales, customer reactions, competitor reactions, competitor reactions, and company goals to determine when changes are needed.
Federal agencies Small Business Administration (SBA): Promotes small business development, helps businesses secure government contracts, and provides assistance and advice on how small businesses can increase revenues and profits. Service Corps of Retired Executives (SCORE): Volunteer organization in which retired business executives share their business experience with small business owners. Small Business Institute (SBI): Free counseling services provided by student teams at many colleges United States Department of Commerce: social and economic statistics for businesses as well as research and support for scientific, engineering, and technological development. Federal Trade Commission (FTC): Ensures that business practices in the US are fair. Internal Revenue Service (IRS): Issues federal taxpayer identification numbers to businesses, distribues publications that explain tax laws, and assists with tax-related questions Small Business Development Center (SBDC): counseling and management assistance sto small businesses.
State Resources Department of Development (DOD): Each state agency administers federal community development programs Workers’ Compensation Board: All business owners who employ workers are required to provide insurance that gives employees benefits in the event of work-related injuries or deaths. State Department of Agriculture and Consumer Protection Division: Issues permits for businesses involved in processing, handling, storage, or distribution of food products. State Sales and Use Tax Division: Issues identification numbers to retail businesses that collect and remit sales taxes. State Department of Labor: Provides business with information regarding employer responsibilities in relation to unemployment insurance Office of the Secretary of State: General business information in addition to information and forms used for incorporation
Local/Community resources Chamber of Commerce: stimulate local economic growth Colleges, Universities, and Technical Schools: Offer educational training and research support Licensing & Permit Offices: Assistance and support when obtaining business licenses County Health Departments; Local health and safety regulations County Extension Services: Good resource for agricultural businesses
Professional services Attorneys: Make sure that business owners follow proper procedures in all legal aspects of the business operation Accountants: Assist business owners in designing and maintaining bookkeeping systems Insurance agents: Inform business owners of insurance requirements and regulations