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Pricing

Name of The Student

Professor’s Name

University Affiliation

Name of The Course

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

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

products, especially if they provide the same services as your business. The price set should be

fair to the customers and give returns to the company. When comparing the prices that we charge

our customers with our competitors, I realized a considerable margin. For example, the base

charge for parking, my competitor charges $20, while 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 us ahead of our competitors. However, our

competitor is also equally good, and they have some strengths and weaknesses. For instance, our

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

competitor has a 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 a 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 competitors. 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 our onboard employees (Gallagher, S., & Park, S. H. (2002). Our company has adopted 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

leadership, and we had to take advantage of their weaknesses.

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Considering the different segments that we have in our organization, some of them do

better than others. This can be attributed to the number of customers we receive for each

segment. For instance, we have realized that the 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 experience 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 made 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 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 made. The need for selling at high prices is to make more

profit and enable us to manage to sell at a lower price in other segments.

References
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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/