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Pricing

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Accordung to “Crompton, J. L. (2016)” Pricing is one of the components of a business plan.

Pricing is the process of setting a price at which a business will sell its products and services.

Before pricing is done, it is inevitable to consider how your competitors are selling their products

especially if they are providing the same services like your business. The price set should be fair

to the customers and also should give returns to the business. When comparing the prices that we

charge our customers with our competitors, I realized that there is a big margin. For example,

the base charge for parking, my competitor charges $20 while for us we charge $18. When I

compare the pricing of my competitor there is a slight difference in prices where he is above us

by at least $2.

Our camp has outstanding features that put as ahead of our competitors. However, our

competitor is also equally good and there are some strengths and weaknesses that they have. For

instance, our park has extensive ground that allows holding many clients than our competitors.

Although our competitor has small park, they have the advantage of more facilities than we do.

Their facilities can hold more clients and therefore for those people who go camping in large

group would consider our competitor more than us because of limited facilities. However, our

company is working on how to increase the facilities. Nevertheless, our services are far much

better than our competitor. From the survey conducted by our field operation team, the report

indicates that our services are preferred more by customers than our competitor. The quality

services we offer can be attributed to the quality of employees that we have on board (Gallagher,

S., & Park, S. H. (2002).. Our company has adapted a business model that empowers our

employees through capacity building and collaborative management. We adapted this model

after realizing that our competitors had a weakness in management and we had to take advantage

of their weakness.
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Considering the different segments that we have in our organization, there are some of

them that do better than others. This can be attributed to the number of customers that we receive

for each segment. For instance, we have realized that adult segment is price sensitive and our

clients want to get the value of their money. Therefore, it is our responsibility to ensure that we

provide the best to our clients so that they have the experience of our services. The children

segment has no problem but requires more investments because of the nature of fans they would

like to have. A lot of investment is done to ensure that the safety of children is guaranteed.

Although the children segment needs more investment, it is not price sensitive and parents are

ready to spend more so long as their children are happy and comfortable with the services. I

believe that there is an opportunity to sell different prices in each market segment as to enhance

our profit. What determines the price is the economic status of our clients. For example, there are

some areas where the customers never mind their spending because they are wealthy (Clavé, S. A.

(2007). On the contrary, there are those areas, where people are poor and they would go for

products and services that are cheap. In such circumstances, we have to adjust our prices

depending on the market segment we are dealing with. When we sell our products at different

prices, we also ensure that we consider the profit that will be made. The need for selling at high

prices is to make more profit and also enable us to manage selling at a cheaper price in other

segments.
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References

Clavé, S. A. (2007). The global theme park industry. Cabi. https://books.google.com/books?

hl=en&lr=&id=UVyDdAjUITQC&oi=fnd&pg=PR5&dq=profit+in+park+industry&ots=RgqgMOV4vi&

sig=LAa2YHm60v3V472nlZTrpMQ5LMY

Crompton, J. L. (2016). Pricing recreation and park services: the science and the art. Sagamore

Publishing. https://www.cabdirect.org/cabdirect/abstract/20173080768

Gallagher, S., & Park, S. H. (2002). Innovation and competition in standard-based industries: a historical

analysis of the US home video game market. IEEE transactions on engineering

management, 49(1), 67-82. https://ieeexplore.ieee.org/abstract/document/985749/