Cost based pricing is determined by first figuring out how much it costs to make a product. Then, from there, a company can determine how much profit they want to see from each unit sold. A common cost based prices item is a cell phone or other new technology. Typically, there are a fair amount of people who are willing to pay high dollar to have the latest iPhone. Profit margins can quickly rise for products such as this. However, you have to do the adequate research to make sure that the price at which you sell your product is a price at which people will by the product. There are ways to reduce your cost which in turn can reduce the price you charge. We have seen this with Wal-Mart. They are always working to offer the lowest prices. Cost based pricing is an easy technique and is a good starting point used to set the floor price when determining your end price.
Walt Disney is a classic example of someone who took an activity and turned it into an experience. He made the idea and the adventure of going to a theme park a complete magical experience. I think a full tour guide experience would be great. I'm sure it has been done before, but you can really expand with a tour. Rather than just taking a boring drive about the city with a guy repeating the same old mundane rubric, what if you had "characters" and activities along the route. These characters would explain the city's history throughout different time periods as the city evolved, dressed and accented according to each period. Maybe some of the characters could be famous people that grew up there. Maybe you can stop at certain points and watch someone make candy, squish a penny, take a picture by the city's oldest tree, etc. Maybe you offer treats and what not that the city is known for. You could even do this with a train! I just recently looked in a fall f...
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