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Floor pricing of "Plasto cover" Floor Cover

Sr. no

List of requirement to make product


1 100 square yard of fibre glass
2 Adhesive
3 Direct Labour
4 Supervision
5 inspection
6 misc
7 factory rent
8 other exp
9 Material cutting
10 tables
11 Selling and admins exp

Price

13 Adver. Exp

Remark
5000
60
270
4500 per month
540 per month
330 per month
2400 per month
240 per month
1800 10 year
5400 5 year
15000 per month
9000 per month

12 Expected R&D 10% of final price


Per Yard Total
one square yard price
Packaging
Installing
P&F
Cost per yard
Total Cost
Propose profit percentage comparing with the current product price
Selling Price
Price of conventional cover for time of 5 year is

Price of "Plasto Cover" for time of 5 year in


case of optimistic selling

250

140

Pricing Strategy
1 Promotional Pricing to increase market base and replace the conventional floor cover wi
2 Floor price should be such that the product be available at the lower rate than market p

The problem here is "Superior" and is five times more durable than existing player, so p
3 term

cover" Floor Cover


Consider 600 yard Consider 1200
Monthly
production
yard production
120000
30000
60000
1440
360
720
6480
1620
3240
4500
4500
4500
540
540
540
330
330
330
2400
2400
2400
240
240
240
15
15
15
90
90
90
15000
15000
15000
9000
160035
16003.5
73.349375

9000
64095
6409.5
117.5075

9000
96075
9607.5
88.06875

73.348715753
2
8
10
93.34871575
224036.9178
50
140

117.5075
2
8
10
137.5075
82504.5

88.06875
2
8
10
108.06875
129682.5

(Considering final price to be Rs 50)

conventional floor cover with "Plasto Cover"


he lower rate than market price

le than existing player, so price has to be more in absolute

Price

Equilibrium price

Floor Pricing

Quantity

Per month
100 floor y
conservativ
export opti

2400
100
600
2400

30
1.25