Create a make believe small fashion retail business and develop a projected profit statement for this business.
Note: Two excel spreadsheet templates have been provided to assist you with this exercise, ‘Template 1 – Costs’ and ‘Template Projected Profit Statement’. These are located in OpenSpace, under additional resources.
The projected profit statement must include:
a. identification of production and delivery costs
b. profit margin and pricing
c. break even sales point for the business.
2. Describe two different pricing strategies that would be appropriate for this business. (300-600 words)
3. Identify the pricing strategies of three competitors for this business. (300-600 words)
4. State your preferred pricing strategy for this business, and explain the reasons for your choice. (300-600 words)
5. Explain the target market this business serves. (300-600 words)
