Pricing your product is one tough decision, and it's something that I have had to put a lot of thought into. Initially, I was just throwing numbers out but after Tuesdays lecture on "My Uncle's Alders" it really helped me put a set ruleset together so I can come up with a price for my product. Below are the guidelines I followed to come up with the price:
- Time and effort spent
- When you are selling the product
- Shipping and handling
- Consider the value of the product from clients perspective
Following these guidelines I decided to the price for my Video Game Cafe would be $9.99 per person for each hour and offer discounts for groups. I decided to go with this pricing scheme for many reasons, one of them being the age group that my business is targeted towards is early teenager to young adults, which means I cannot have a high price entry point. $9.99 is low enough for someone who just wants to go play some games with their friends in a LAN environment and have fun. However at the same time $9.99 is pretty much the entry point, anything longer than 1 hour will cost more, so it gives enough room for someone to just drop by for a few games and get the $9.99 worth or they could stick around longer and pay more to continue playing. Another reason I decided to go with this price point is because my primary source of income would be food and drinks that are being sold, therefore it is a good idea to have a low priced entry point which leaves a lot more room for people to spend money on snacks.
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