Question: Your company, TechSpark Solutions, specializes in providing software subscription packages for small businesses. Currently, you offer two subscription tiers: Professional and Enterprise. The Professional Tier
Your company, "TechSpark Solutions," specializes in providing software subscription packages for small businesses. Currently, you offer two subscription tiers: Professional and Enterprise.
The Professional Tier costs $ per account per month to provide.
The Enterprise Tier costs $ per account per month to provide.
You have two types of customers: Startups and Established Businesses.
Startups:
Willing to pay $ per account per month for the Professional Tier and $ per account per month for the Enterprise Tier.There are Startups in your market.
Established Businesses:
Willing to pay $ per account per month for the Professional Tier and $ per account per month for the Enterprise Tier.There are Established Businesses in your market.
Questions:
a What price will you charge for each subscription tier to maximize your profits?
Hint: Consider the willingness to pay of each customer type and how to segment the market for maximum profitability.
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