Copyright Envision Corporation. 2002. All rights reserved.

Protected by the copyright laws of the United States & Canada and by international treaties. ! S ""E#A" A$% S!& C!"' P&() * !E% !( % S!& *U!E+ PU*" S)+ (,,E& ,(& SA"E+ " CE$SE (& SU*" CE$SE+ # -E (& % SC"(SE !( A$' (!)E& PA&!'+ !) S P&(%UC! $ )A&% C(P' (& % # !A" ,(&.. A"" (,,E$%E&S / "" *E SUE% $ A C(U&! (, "A/.

Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States & Canada and by international treaties. ! S ""E#A" A$% S!& C!"' P&() * !E% !( % S!& *U!E+ PU*" S)+ (,,E& ,(& SA"E+ " CE$SE (& SU*" CE$SE+ # -E (& % SC"(SE !( A$' (!)E& PA&!'+ !) S P&(%UC! $ )A&% C(P' (& % # !A" ,(&.. A"" (,,E$%E&S / "" *E SUE% $ A C(U&! (, "A/.

Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States and Canada and by international treaties. ! S ""E#A" A$% S!& C!"' P&() * !E% !( % S!& *U!E+ PU*" S)+ (,,E& ,(& SA"E+ " CE$SE (& SU*" CE$SE+ # -E (& % SC"(SE !( A$' (!)E& PA&!'+ !) S P&(%UC! $ )A&% C(P' (& % # !A" ,(&.. A"" (,,E$%E&S / "" AU!(.A! CA""' *E SUE% $ A C(U&! (, "A/.

PRICE SETTING WORKSHEET

Things to Take in Consideration When Setting Price You should consider setting prices a o!e "our co#petitor$s prices i%& Yes No '

'o0r 1ar2et is not sensitive to price changes. 'o0r 1ar2et consists 1ainly of growing co11ercial c0sto1ers. 'o0r prod0ct is an integral part of an established syste1. 'o0r rep0tation for stat0s+ service+ and other positive perceptions in the 1ar2et increases yo0r prod0cts3 perceived val0e. 'o0r c0sto1ers can easily b0ild yo0r price into their selling price. 'o0r prod0ct is only a tiny percentage of yo0r c0sto1ers3 total costs.

You should consider setting "our prices (ust elo) "our co#petition i%&

'o0r 1ar2et is very sensitive to price changes.

 Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States & Canada and by international treaties. ! S ""E#A" A$% S!& C!"' P&() * !E% !( % S!& *U!E+ PU*" S)+ (,,E& ,(& SA"E+ " CE$SE (& SU*" CE$SE+ # -E (& % SC"(SE !( A$' (!)E& PA&!'+ !) S P&(%UC! $ )A&% C(P' (& % # !A" ,(&.. A"" (,,E$%E&S / "" *E SUE% $ A C(U&! (, "A/.

'o0r c0sto1ers need to reorder parts or s0pplies. 'o0r b0siness is s1all eno0gh that a lower price will not threaten yo0r larger co1petitors and start a price war. 'o0 have the option of econo1ical prod0ction r0ns which decrease yo0r 0nit cost. 'o0 have not reached f0ll prod0ction capacity. Esti#ating *e#and 4. /hich prod0cts5services do c0sto1ers shop aro0nd for6 2. /hich prod0cts5services are in greater de1and even at higher prices6 7. Are certain prod0cts5services in greater de1and at one ti1e of the year than another6 f so+ which6 And what is the d0ration of the de1and6 8. %o yo0r c0sto1ers e9pect a certain price range6 :. /hat is the balance between price and ;0ality in yo0r 1ar2et6 The Co#petition 4. /hat are yo0r co1petitors3 pricing strategies6 2. Are yo0r prices based on an average gross 1argin consistent with yo0r co1petition3s6 7. s yo0r policy to sell consistently at a higher price+ lower price+ or the sa1e price as yo0r co1petitors6 /hy6 8. )ow do co1petitors respond to yo0r prices6 Pricing and +arket Share 4. /hat is yo0r present 1ar2et share6 2. /hat are yo0r 1ar2et share goals6 !o increase share6 .aintain share6 7. /hat effect will price changes have on yo0r 1ar2et share6 8. s yo0r prod0ction capacity consistent with yo0r 1ar2et share goals6 Strateg" 4. )ave yo0 deter1ined how pricing affects yo0r sales5vol01e goals6 2. )ow can pricing help yo0 gain new b0siness6

 Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States & Canada and by international treaties. ! S ""E#A" A$% S!& C!"' P&() * !E% !( % S!& *U!E+ PU*" S)+ (,,E& ,(& SA"E+ " CE$SE (& SU*" CE$SE+ # -E (& % SC"(SE !( A$' (!)E& PA&!'+ !) S P&(%UC! $ )A&% C(P' (& % # !A" ,(&.. A"" (,,E$%E&S / "" *E SUE% $ A C(U&! (, "A/.

7. )ave yo0 tested the i1pact of price strategies on yo0r 1ar2ets6 8. Are yo0r strategies in line with broader econo1ic trends6 Policies 4. )ow does the nat0re of yo0r prod0cts5services affect their price6 2. )ow does yo0r 1ethod of distrib0tion affect price6 7. %o yo0r pro1otional policies affect prices6