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Pricing Strategy

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Question: Write a 1 page recommendation for the pricing strategy necessary to successfully market your health care product or service.

Answer: Service details: We are providing the nutritionist and dietitian services to the students. This outreach program is designed to provide health care services to the students who are not aware of the deficiencies of different nutrition like calcium, protein and carbohydrates and problems linked with these deficiencies. It will also benefit the students that belong to lower or middle-class families. Such families cannot afford the visit to the nutritionist.

Methodology: We have made contacts with the schools and other institutions and also with the health care providers like doctors, physician's nutritionists. These doctors will visit different institutions to check the health conditions of the students. Doctors will check the health conditions of different students and provide them with health care services. Doctors will also give a diet plan to the students to live a healthy life.

Total expense: The cost that incurs on the outreach program includes the transportation cost, cost of instruments used to check the nutrition level of the students, cost of preparing the diet plan and the cost of nurses and other assistants hired for these services. The price of these nutrition programs will be paid by the owners of the schools to get better health of their students. We also have some donators that will pay amounts to the doctors for the help of needy people who cannot afford these treatments on their own. Expenses include $90 spent on labor and $60 on the materials used in the process. The overhead cost incurred in the process$40 and marketing cost is $10. So the total expense for this process is calculated to be $100(Pérez-Escamilla et al., 2019).

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Total profit: Profit means the amount saved after excluding the costs from the revenues. $300 is charged for per day service. Whereas the cost is $200 per day. So the profit earned will be $100 per day.

New Service

Per Day

100 days per year (1st-year sales forecast)

Service Charges**

$300.00

$30,000

Cost of Goods Sold

 

 

Labor

$90.00

$9000

Materials

$60.00

$6000

Overhead

$40.00

$4000

Marketing costs

$10.00

$1000

Service provider profit

$100.00

$20,000

Total Economy pricing strategy will be used for this outreach program. This program will try to reach all the institutions in the area. Minimum costs will be spent on marketing and advertisements. The profit margin will be low because this program is designed for the students who are unaware of the nutrition and the needy students who cannot afford the visit to the nutritionists (Faith et al., 2018).

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