Floor Cover Limited

Presented By,
Amit Kumar(5),
Archie Gangrade(8),
Kumar Sourabh(19),
Shijil Neyyan(35),
Vineet Kasat(45)
 Pricing Objective
► Survival
► Maximum current profit
► Maximum market share
► Maximum market skimming
► Product quality leadership
 Pricing Objective
► Survival
► Maximum current profit
► Maximum market share
► Maximum market skimming
► Product quality leadership
 Determining Demand
► Assumptions
► Domestic demand – 1400 sq yards
► Export demand – 600 sq yards
► Market not highly price sensitive
 Estimating Cost
► Total Demand – 2000 sq yards / month
► Total fixed cost – Rs 23,115
► Total Variable cost – 9130 * 20 =Rs 182600
► Total Cost = Rs 2,05,715
► Cost per square yard = Rs 103
 Competition
► Existing – Cotton wool floor cover producers
► Expected - New players in non-conventional
floor cover market
 Selecting a Price Method
► Markup pricing
► Target return pricing
► Perceived value pricing
► Value pricing
► Going-Rate pricing
► Auction type pricing
 Selecting a Price Method
► Markup pricing
► Target return pricing
► Perceived value pricing
► Value pricing
► Going-Rate pricing
► Auction type pricing
 Final Price Setting
► Cost Price – Rs 103 per sq yard
► Margin – 20%
► Selling Price – Rs 125
Thank You