Write a 1 page recommendation for the pricing strategy necessaryto successfully market your health care product or service. Be sureto include an estimate of the costs associated with the product orservice, and the profits that are expected with the recommendedpricing. You will need to make some “educated estimates” tocomplete this assignment; please follow a format like this todemonstrate that your recommended pricing will result in profits:New Product Per Unit 20,000 units (1st year sales forecast)Suggested retail price $100.00 $2,000,000 Cost to retailer **$50.00 $1,000,000 Retailer margin $50.00 $1,000,000 Cost of GoodsSold Components/raw materials $10.00 $200,000 Labor $10.00 $200,000Overhead $5.00 $100,000 Marketing costs $7.00 $140,000 Manufacturerprofit $18.00 $360,000 ** “Cost to retailer” is the same asManufacturer’s sales revenue New Service Per Day 200 days per year(1st year sales forecast) Service Charges** $250.00 $500,000 Costof Goods Sold Labor $100.00 $200,000 Materials $20.00 $40,000Overhead $30.00 $60,000 Marketing costs $10.00 $20,000 Serviceprovider profit $90.00 $180,000 ** Service Charge is the expectedsales revenue from the new service As a starting point toestimating costs, visit Bplans and search for a sample plan in asimilar line of business to the one you are proposing. Look for the“Pro Forma Profit and Loss” chart within the Financial Plan sectionof the business plan, and make note of the expected costs inrelation to forecasted sales. You can also do an Internet searchfor “income statement – (insert your product or service here)” andreview the samples that you find. Within this section draft, pleasedemonstrate your grasp of the marketing terminology and conceptsrelated to pricing strategy. For example, it would be appropriateto identify whether you have chosen a penetration, skimming, orfollowership price strategy, and why you believe that strategy isappropriate.
