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Digital Portfolio: Jacob M. Benedict

Setting a Price

Setting a Price


Process 1:

The three trends in my community that will impact my decision for setting a price for my program are, Mission driven and benefits oriented, Doing more with less, and Contracting Services.

Process 2:

                        Expenses                                                             Revenues

Personal time

$550

Promotion costs

$550

Rock climbing equipment

$600

Kayaks

$500

Water park

$378

Wenatchee white water rafting

$600

Food

$500

 

 

 

 

 

 

 

Process 3:

Cost Items

            Description                                                                   Total Costs

__________________________________________________________

Indirect Costs

            - Administrative Overhead                                            $200.00

Direct Costs

            - Rock climbing, equipment rental: 2 days

               Equipment rental: ($20 / per person x 2 days)

               = $40 per person)

               ($40 x 13 teens)                                                        $520.00

               Staff salary: $9 / hour, 8 hours a day for 5 days

               ($9 x 8 = $72 / day) ($72 x 5) =                                $360.00

 

            - Hiking/Camping: 2 days

               Staff salary: $9 / hour for 30 hours. ($9 x 30) $270.00

 

            - Water park: 1 day

               Cost $26 per person

               ($26 x 13 teens) =                                                     $338.00

               Staff Salary: $9 / hour, 8 hours a day for 5 days

               ($9 x 8hrs = $72 / day) ($72 x 5 days) =                   $360.00

 

            - Kayak rentals and instructions: 2 days

               $20 per person each day ($20 x 2 days = $40)

               per person.

               ($40 x 13 teens) =                                                     $520.00

               Staff Salary: $9 / hour, 8 hours a day for 5 days

               ($9 x 8hrs = $72 / day) ($72 x 5 days) =                   $360.00

 

            -White water rafting: 1 day

               $30 per person, ($30 x 13 teens) =                            $390.00

               Staff Salary: $9 / hour, 8 hours a day for 5 days

               ($9 x 8hrs = $72 / day) ($72 x 5 days) =                   $360.00

__________________________________________________________

Total Fixed Costs:                                                                  $3,678.00

Revenues:                                                                               $3,678.00

                                                                                              $0,000.00

 

Variable Costs

            Ability Building Adventure T-shirts                                $7.00

            Adventure Tips, booklet                                               $4.00              

                                                                                              $11.00           

 

Process 4:

My program will use Cost-Based Pricing and Demand-Based Pricing. I would like to cover about 1/3 to 1/2 of the program costs. 

Process 6:

Donations, Sponsorships, Grants, Fees, Taxes…

Sponsorships from local companies and businesses.

Process 7:

Are there any psychological issues that may be present for customers with regard to pricing? My whole goal, as a programmer, is to offer programs to a community in need of leisure by giving them affordable pricing and opportunity. In order to break even and not fall in debt, I understand my program charge must be set at a reasonable price for my organization, in order to cover costs and charges. This may be one issue with the pricing system. But for the most part, through sponsors, grants, and donations, I believe I will be able to offer programs at prices that the community can’t complain about.