Pricing has always been a tricky part of businesses because owners need to put a lot of

consideration upon deciding it; whether it is how to gain back the expenses or the external
factors such as if customers are able to afford it and other more. In our own country, goods are
expected to increase price every now and then. It has been a hardship for every businessman and
businesswoman on how to adapt to continuously changing price and laws. Our group had chosen
to focus not only in one type of business entity, but the three types of business organizations
namely the following: manufacturing, merchandising and service. In this case, we would be able
to compare and view how pricing affects the business in a various perspective.

First to be mentioned is Lanie Manabat who owns a karenderya. Mrs. Manabat’s

business is to be considered manufacturing for she acquires raw materials and produces goods
out of it. In pricing her products, she considers the community or the target market of hers; she
had thought that the prices should be affordable for the people in her community. This way, it
would be easy for her to attract customers and it would be difficult for other people to compete
with her. She also stated that she would be only changing her pricing regarding to the cost of raw
materials, which the Train Law and African swine fever are pretty much affecting it. Instead of
increasing the price, she countered it by changing the serving amount. Zaida Gupo, who owns a
Sari-sari Store and also sells hulled rice grains explained that she does not really gain back the
capital, instead it circulates as her business progress. Cost is what she heavily considers in
pricing, that's why it took long for her to adjust when the Train Law was implemented. Mrs.
Gupo’s business is considered merchandising; she would buy goods and sell it for a reasonable
price. Rearmost, is the business owner of Autoworks Service, Didang Agcaoili. Compared to the
two businesses mentioned above, their pricing is unique in a way they would only decide it upon
the inquiry of the customer. They would also consider the pricing whether the customer is a close
friend or a relative because they would give some discounts. The similarity of the three is that
they earn more every -BER months or December to be specific, which they take advantage by
having more stocks and producing more products. In additional, those three don't put the rent and
utilities in consideration because their store is in their own home.
MANAGERIAL ECONOMICS

GROUP VI

PRICING

Ancheta, Danica W.

Catalogo, Marjorie P.

Isip, Iris G.

Ligutan, Jaqueline V.

Manabat, Ghenalyn

Orsolino, Emma

Poblacion, Kirsten Gaven R.

Dr. Precila R. Bautista