You have laid out your pricing plan at $185 for a bounce party for 8 kids; your competitor is at $155. A potential investor says she thinks you can get a 30% premium with your new facility. Did she just criticize or endorse your pricing?

Question

Business

Valentina

31 December, 21:47

You have laid out your pricing plan at $185 for a bounce party for 8 kids; your competitor is at $155. A potential investor says she thinks you can get a 30% premium with your new facility. Did she just criticize or endorse your pricing?

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Answers (1)

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Uriah Liu · Answer 1

The investor criticized our pricing.

Explanation:

In this case our competitor charges $155 for a party, and the investor said that due to our new facilities, we could be able to charge 30% more than our competition = $155 x 130% = $201.50

So she is criticizing our pricing plan because it is too low, and instead of charging $185, we should charge $201.50. She believes that our pricing plan is making us lose money.