Uses return on sales, percentage return on sales to net sales, or sales to net investment Sales oriented - Percentage increase over previous periods. Might use a lower price to increase market share or to gain a foothold in the market. Status Quo - Uses price leadership with the leader stabilizing the price or competitive pricing where the others follow the leader. Market oriented Skimming - Initially high price then lower price according to demand. Penetration - Lower initial price to gain a market share foothold then, once established, raise prices to meet competition.
Margin oriented - Cost and profit margins on each item are primary consideration.
Whether you are a service business, a manufacturer, retailer, or whatever, you must produce. The production may be a product or something as intangible as a smile, but something must be produced. This section addresses how you plan to deliver the goods or services which form the basis of your business. Your proposal is only as strong as the people you have available to assist you in executing the plan. Here you detail the key players who you have already identified or the qualifications of successful candidates if you must recruit.