Distribution & Pricing. Put yourself in the position of marketing manager for the restaurant organization.

•Identify the most effective methods for getting products/services to customers in the target market.
•Identify need for warehousing of products and for distribution channels if not sold direct to buyer.

•Review the following four-step process for setting a price. ?Establishing pricing goals
?Estimate demand, costs, and profits
?Choose a price strategy
?Fine-tune with pricing tactics
?Enter values into table

•Be sure all products/services carry their share of expenses plus provide for profit.
•Compare prices for your products/services with similar products/services in the industry. ?If your prices will be higher, they need to provide the necessary “added value” to justify.
?If your prices are lower, explain why in terms of your marketing strategy.
Website Sales
•What price would you sell your products on your web-site?
•What would be the profit for each pie you sell online? ?(Be sure to include a discussion of other costs, such as the website, shipping and packaging).

•What marketing strategy would affect your decision?

Alternate Sales Venues/Price
•If you sold 1,000 units (pies) to a convenience store instead of the website, would that change your pricing? Why or why not?
•What price would you charge to sell 2,000 pies individually on the street, at a food fair or on eBay?
•What marketing strategies would you consider for lowering your costs for alternative sales venues?