Analyze the competitive

price environment.

not price$-$sensitive when buying hammers

You check online to see what the other hardware stores in

town are charging for hammers.

You utilize reference prices to determine that Red Wolf

customers should pay $$11$ for a standard hammer

You determine that your initial price$-$setting process has

resulted in setting a price that is still too low and you

develop strategies for raising the price.

You develop a break$-$even analysis based on the costs to

sell the hammers.

effectiveness of the price

Choose a price decide that Red Wolf Hardware needs to increase the

volume of hammers sold.

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