In MikesBikes you run a bicycle manufacturing company. Your company sells its bikes to retail stores at a Wholesale Price who then on sell these to customers at the Retail Price. As the manufacturer you set the Retail Price (the dollar amount) for each of your bikes.
Retail Price = Wholesale Price – Retail Margin
To determine a competitive or strategic Retail Price you should consider:
- Price sensitivity in the market (see the Market Research report); and
- Price of your competitor’s products (see the Market Summary report).