Pricing Strategies for Profit Optimization: A Comprehensive Analysis of Marilyn Lyohir’s Approach

Pricing Strategies for Profit Optimization: Marilyn Lyohir

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The advantage of using a pricing method that is cost based would allow Marilyn Lyohir in determining whether she can compete in the market that is low priced or the market price that is premium. If the products of Marilyn Lyohir can be placed in the market price that is premium, then she could raise the prices of her products to make more profits. Moreover, Marilyn Lyohir can also include advertisement cost of $3000 to the Chile Pepper Magazine to the product costs. The cost-based pricing method takes all costs, which are the variable and fixed costs, associated with the product on sale, and add a profit margin. The profit margin is usually up to 10% to reach the selling price (Chau, 2005).on the products that sell most, Marilyn Lyohir…