QUESTION 4: PRICING

Background information needed to answerQuestion #4:

Review the pricing options available for each of the vehicles below.Also review the Manufacturer Suggested Retail Price of the vehicle as you review the best price mix for all three vehicles.

PRICING OPTIONS

Price Mix 1:

Base Sale Price:$19,500

Mid-tier Sale Price:$24,550

Fully-Loaded Sale Price:$34,999

Price Mix 2:

Base Sale Price:$20,000

Mid-tier Sale Price:$25,000

Fully-Loaded Sale Price:$30,000

Price Mix 3:

Base Sale Price:$22,000

Mid-tier Sale Price:$24,000

Fully-Loaded Sale Price:$28,999

PRODUCT DESCRIPTIONS

Vehicle 1

Car

Providing the owner fantastic gas mileage for the long daily commutes as well as superior performance the car is a great practical, well rounded option. With 4 doors and a large rear seat, this car is suited to hauling family and friends anywhere they want to go. In the rear, the car boasts the largest trunk of any car in its class for the ultimate hauling experience.

MPG:28 city/ 40 highway / 32 combined

Passengers:5

Safety Rating:Fair

Warranty:3 year/ 36k miles

Price:$20,000.00 ($325 per month w/2k down)

Lease Cost:$180 per month / $1800 down payment

Vehicle 2

Minivan

With its ability to haul all of your family and friends, you'll be ready to tackle all life adventures. Built with convenience in mind, the van has 2 automatic sliding doors and an electronic rear hatch for the easiest of access. The convenience doesn't stop there with rear seats that fold into the floor giving in class leading cargo space.

MPG:24 city/ 35 highway/ 28 combined

Passengers:7

Safety Rating:Best

Warranty:10 year/ 100k miles

Price:$25,000.00 ($415 per month w/2k down)

Lease Cost:$200 per month / no money down special offer

Vehicle 3

Truck

With maximum towing capacity, the truck can pull any load down the road. The spacious luxury level cabin hosts a whole suite of features making anyone feel right at home. Leather seating, upgraded sound system, and adaptive cruise control make driving this large vehicle a breeze.

MPG:12 city/ 18 highway/ 15 combined

Passengers:5

Safety Rating:Poor

Warranty:5yr/60k miles

Price:$40,000.00 ($685 per month w/2k down)

Lease Cost:$500 per month/ $2500 down payment

QUESTION 4: PRICING

Based on your knowledge of Pricing Strategies, recommend a pricing mix that has the best pricing mix for all three vehicles.

Price Mix 1.

Price Mix 2.

Price Mix 3.

Please explain your reasoning.