unit 5: discussion | Marketing homework help

Pricing Strategy for Products and Services

Firms successful at creating customer value with the other marketing  mix activities must capture this value in the prices they earn; price  being the sum of all the values that customers exchange to gain the  benefits of having or using a particular product or service.  A company  does not set a single price, but rather a pricing structure  that covers different items in its line. This pricing structure changes  over time as products move through their life cycles. The company  adjusts its prices to reflect changes in costs and demand and to account  for variations in buyers and situations.

Pricing structures are also determined by how a firm might view  itself as an integral partner in a value network.  It may be thought of  as an overall system of formal and informal relationship within which  the firm participates to procure, transform, enhance, and ultimately  supply its offering in final form within a market space. This value  network is a strategic approach to cut costs and maximize process  efficiencies, in the pursuit of the ultimate objective; to co-create  value, a most important component of the pricing structure.

Washburn Guitars: Using Break Even Points to Make Pricing Decisions

Washburn Guitar manufactures instruments in four  categories—one-of-a-kind, batch custom, mass customized, and mass  produced—and must set prices in each category that enable it to stay in  business.  Bill Abel, Washburn’s VP of sales, is responsible for setting  the prices for the firm’s guitar lines.  Looking at a new line whose  suggested retail price is $349, Abel estimates elements of Washburn’s  fixed and variable costs to project the likely break-even point and  profit.  You should calculate break-even points and profits under  various conditions and assess the effects of moving two production  facilities to a single new location.

To do this, you must first understand how to calculate the following:

Key terms and equations defined and explained in Chapter 13: Price  (P), Total Revenue (TR), Total Cost (TC), Fixed Costs (FC), Variable  Costs (VC), Unit Variable Costs (UVC), and Break-Even Point (BEP). Also,  ask the following questions:

  • How do you compute Unit Variable Cost (UVC)?
  • How do you compute total cost (TC)?
  • What is a break-even point? How do you calculate it?
  • What is the profit equation?

Once you understand these cost equations, compute the break-even  point for the new line of guitars if the retail price is (a) $349; (b)  $389; and (c) $309. Also, (d) if Washburn achieves the sales target of  2,000 units at the $349 retail price, what will its profit be?

Assume that the merger with Parker leads to the cost reductions  projected in the case. Show the (a) new break-even point at a $349  retail price for this line of guitars and (b) new profit if it sells  2,000 units.


Please review the following information about the pricing considerations for Washburn Guitars:

Background on Washburn Guitars

Based on the information provided, put yourself in the position of a  marketing consultant brought in to the company to critically examine the  campaign’s ability to meet its’ pricing objectives, and then formulate a  set of well-developed and supported recommendations to the company’s  senior leadership team. The recommendation should be logically  presented, well-supported, and thoroughly vetted. 


Kerin, R. A. & Hartley, S. W. (2017). Marketing. (13th ed.). New York, New York: McGraw-Hill Education.

Washburn History. (n.d.). Retrieved July 8, 2016, from Washburn.com: http://www.washburn.com/community/

University Writings
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.