EQ - What pricing considerations must be considered at different stages
of the product life cycle?
Day 1
- Activator – How would you find the perfect price
for a product?
- Use your understanding of the PLC to complete the
following:
- In groups of 2-3, identify a
famous product (different from any other group’s choice) and where it is
in the product life cycle.
- Research the current price and
what factors are influencing the product’s current price.
- Compose a blog post to
reporting your findings.
Day 2
- Activator – Reply thoughtfully to at
least one other group’s post (more than I agree)
- Lecture – Price
determination
- Price, cost, profit,
markup, markdown, break-even
- Practice problem
- AP – How are prices
determined?
- Pricing Calculations
Assignment
- Distribute handout
- Individually submit a
blog comment showing the answers (with computations) to the assignment
Day 3
- Activator – Ethical
Dilemmas
- Write a personal blog
post – Prompt: How should you price your product if it is a life-saving
drug?
- Distribute Rubric
- Respond thoughtfully to
at least 2 peer’s postings (more than I agree/I disagee)
Nathan Brown
ReplyDeletePricing a Life Saving Drug
Although pricing a lifesaving drug at first seems like a very difficult task it is easier than many other products. A lifesaving drug should be used to save lives not to make money therefore the price equation normally used should be simplified to just the cost section. The profit desired should be eliminated because the drug should be non-profit similar to non-profit hospitals. The price should only depend on what the cost of the drug is to obtain, manufacture, transport, and store. Saving lives that would be lost without the drug is enough a profit to continue making the drug. The founder of the drug has to make the ethical decision to save lives to better the world or to better their own self by making a profit off of the medication. Which route would you take?
Life Saving Drug
ReplyDeleteIf I found a Life Saving drug I would sell it to break even because I don’t want to go out of business and I want it to be as affordable as possible. If the drug was so cheap that I could not make any money I would go out of business and the drug would no longer be available for people to buy and I would not be helping people. But if I try to make a profit it will not be available for many people besides the rich. If only the rich can buy it then I won’t be helping people and the business could fail because not enough people are buying it
-CG
KL
ReplyDeleteLife-Saving Drug Pricing
For a life-saving drug, the pricing on it is something that causes great controversy. Most people would say they are valuable items and therefore should be worth a lot of money. However, when it comes to saving lives the real question isn’t how much money you can make of the sale, but how many people you can change and impact positively. By saving someone’s life you are allowing a human being to live longer and enjoy life longer. This being said, the medicine should be affordable for the average consumer.
Pricing your life saving drug
ReplyDeleteMy life saving drug costs a lot money to make. If I make it too expensive then the people who are dying aren’t able to buy the drug to save their life. Making the drug too cheap and I will be losing a lot of money. As of now I would rather be saving people’s lives and make the drug less expensive. This also puts me in a dilemma. As I am saving people’s lives with, an expensive drug to make, at a cheap price, I will be swimming in debt. For now I could sell the drug at a cheaper price and research cheaper ways to make the drug. I could alter the formula and the way to make the drug cheaper but still get the same results from it. Short-term I will just sell the drug for a cheaper price than it is to make because paper should not determine whether you live or die. A.L.
Lifesaving Drug
ReplyDeleteSo we are in a dilemma, I have a lifesaving drug and we need to decide whether or not to make myself filthy rich or save millions of people. The drug cost 50 dollars to make and I was planning on selling it for 100 dollars. The problem is there is no drug manufactures that will join me on this because they say I am selling this drug for too little of a price. I need your help to save the people that don’t have the money to afford other drug that are so expensive and not as effective. With this price we will be able to bring hope to low income families that can’t afford to help loved ones that are dying. A wise man once said that greed is the root of all evil. Why should we hinder people from being able to save themselves and their loved ones?
I know that some of you are probably thinking that we have to be careful not to underprice it and make the product look cheap. With the help of you all we can prove to people that we are here to help them and provide an inexpensive drug that is the only one that can save their life. Now don’t get me wrong we will be making money but we will not be ripping the great people of this United States Of America. Please join with me to help the world and give them hope while making a little bit of money at the same time.
Save A Life Today!
ReplyDeleteHow can you put a price on a life? You can’t! Life is priceless. I have created a lifesaving drug and I need you to distribute it. I will not sell my product, but give it away. I will create a charity that collects money to cover the costs of the drugs and helps give it out to anybody in need. People will look at the company and give freely because they know they will save lives. The charity’s cost will be covered from the generosity of people. Sick people will be given our product and be saved, and they don’t have to pay anything. - AE
Life Saving Drug
ReplyDeleteIf it was my decision to pick the price of a lifesaving drug, I would sell it as low as possible if I could afford it myself to price it as low as I would like. The meaning of life is way more important than making a profit yet if it costs 100,000 dollars to make then we would go bankrupt with in the first week. I would be willing to sacrifice some profit, go below breaking even donating some of my own money to help make this drug. Even though I am not making money and losing out on profit I would work a second job if it means saving the lives of other so they can live longer with their loved ones. If someone who I loved has been diagnosed I would want to have the cure affordable to cure he or she I would be frustrated with myself if I couldn’t afford to save his or her life just because of my financial state. So I would research average American income and go a step below and try and sell it for as long as I can so lower class, middle class and higher class citizens can purchase and keep their loved ones
G.C
MY------Life Saving Drug Scenario
ReplyDeleteHow could one live with himself if he had the ability to save someone’s life but instead chose to make a few extra bucks? Who are you to live a life of extravagance while someone else is fighting just to live? For these reasons, I believe that there is only one choice; to make the drug affordable enough for the average citizen. There is no need to make a life-saving drug cost such an unreasonable price. It is your responsibility as a reasonable human being to care for the innocent. A wise man once said, “Thou shalt love thy neighbor as thyself.” You must put the needs of others above the needs of your own. You must look past the dollar sign and look into the faces of those suffering and their loved ones who watch them suffer.
Besides the moral dilemma, it could potentially be a very wise marketing decision. If you are too filled with greed to have the desire to help others, than examine the lucrative possibilities. If the product is sold at a price that is affordable to the average citizen, then more people will be spending money to purchase the drug. If only the upper class of society has the buying potential to purchase the drug, then less amounts of the drug will be sold. For this reason, and the fact that it is the morally “right” thing to do, it is the obvious choice to sell the drug for a relatively inexpensive price.
We Have to Make Tough Choices Too.
ReplyDeleteChemotherapy: $10,000
Hospital Bills: $40,000
Emotional Toll: Not worth it
Life: Priceless
How can someone put a price on a life? A life cannot have a set dollar amount. With three economic classes it can be a struggle for someone to get the necessary medical assistance they need.
The Miles Corporation has discovered a drug that can help cancer patients by killing the cancer cells and the drug barely touches the regular human cells. Now you all might be wondering how much it is going to cost. How can we price a drug that is going to save lives just as easy as taking a breath?
There is no need for profit. We are not in this to make more money for ourselves. We are going to price the product for how much it costs to produce it. The price will be between the price of $50-$100 in United States dollars for the United States of America, and it will be between 40 Euros- 80 Euros for the European nations. If the drug needs to be shipped throughout the world the cost will stay the same with $10 shipping cost added.
We want everyone to get the most out of their life. There is no need for the Miles Corporation to gain more money for our benefit. We are a family here at the Miles Corporation, and we want everyone to get the most out of what they deserve.
Our main goal is to save lives, and that is what we are going to do.
A Life Saving Drug
ReplyDeleteRecently a group of scientists and myself have created created a drug that treats cancer. Now what a businessman might think is how to profit off this drug. But I'm not a businessman. You can't put a price on life, so I can't put a price on this LIFE saving drug. I would much rather save a million lives than make a million dollars. Now we aren't selling the drug, but we do need money to make it. This is why I'm starting the Dollar for Life charity. We hope that we can get enough donations to be able to continuously make and ship the drug world wide. You decide whether or not you can put a price on that.