BMATWT 353 - Business of Building

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Assignment 8 - Marketing: Pricing and Sales in the Design Office

Due: Thursday, December 9

Please hand in your individual assignments at the beginning of class on Thursday

You are the sole owner of a small architectural design office. You are a licensed Architect, just starting out in the business. You've got two full time staff, a clerical employee, and a draftsperson with a combined annual salary of $55,000. You have to worry about certain other expenses, legal, accounting, rent, power & telephone, office expenses, insurance, and your own pay and profit.

Your target market is luxury homes, 5,000 sq. ft. and up.

1) Devise a PRICING strategy for your firm. (1/2 Page)Using the terminology of Pricing that is presented in Chapter 11, choose a pricing strategy and make a forecast for your first year Revenues, Expenses, your own salary, and any profit the firm might have. EXPLAIN why you are choosing this pricing strategy.

You should back this up with a very brief income statement (e.g.)

Revenues (What are they and how much?) - Expenses (Explain) = Profits

2) Devise a PROMOTION strategy for your firm. (1/2 Page) Using what you know about the Promotion Mix (Advertising, Personal Selling, Sales Promotion, Publicity and Public Relations. Describe what marketing activities you will be performing to promote your new business enterprise.

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Produced and maintained by David T. Damery
Building Materials and Wood Technology
Department of Natural Resources Conservation
College of Natural Resources and the Environment
University of Massachusetts, Amherst.

Assignment 8 - Marketing: Pricing and Sales in the Design Office

Due: Thursday, December 9

Please hand in your individual assignments at the beginning of class on Thursday

You are the sole owner of a small architectural design office. You are a licensed Architect, just starting out in the business. You've got two full time staff, a clerical employee, and a draftsperson with a combined annual salary of $55,000. You have to worry about certain other expenses, legal, accounting, rent, power & telephone, office expenses, insurance, and your own pay and profit.

Your target market is luxury homes, 5,000 sq. ft. and up.

1) Devise a PRICING strategy for your firm. (1/2 Page)Using the terminology of Pricing that is presented in Chapter 11, choose a pricing strategy and make a forecast for your first year Revenues, Expenses, your own salary, and any profit the firm might have. EXPLAIN why you are choosing this pricing strategy.

You should back this up with a very brief income statement (e.g.)

Revenues (What are they and how much?) - Expenses (Explain) = Profits

2) Devise a PROMOTION strategy for your firm. (1/2 Page) Using what you know about the Promotion Mix (Advertising, Personal Selling, Sales Promotion, Publicity and Public Relations. Describe what marketing activities you will be performing to promote your new business enterprise.

Many of the materials created for this course are the intellectual property of the instructor. This includes, but is not limited to, the syllabus, lectures and course notes. Except to the extent not protected by copyright law, any use, distribution or sale of such materials requires the permission of the instructor. Please be aware that it is a violation of university policy to reproduce, for distribution or sale, class lectures or class notes, unless the faculty member has explicitly waived copyright. Copyright 2006, David T. Damery