Question

A third company called value printing wants to start trading. it wants it’s prices to be between those of print it and top print. This company never wants to be the most expensive and never wants to be the cheapest.

Answer 1

Value Printing should consider its production costs and desired profit to set prices between those of its competitors without being the most expensive or cheapest.

Step-by-step explanation:

For Value Printing to set prices between two competitors, such as Print It and Top Print, it must consider both its cost of production and the desired profit. Setting prices involves ensuring that the company covers all expenses associated with the production process while also achieving a profit margin that allows it to position itself in the market as intended. To not be the most expensive nor the cheapest, Value Printing can analyze competitor pricing and find a median price point that accomplishes this goal. In doing so, it's important for Value Printing to ensure it maintains its ability to generate sufficient revenue to sustain the business while remaining attractive to consumers searching for moderately priced options.