When researching the price of virtual styling applications the prices vary. Larger companies did not charge a price for their applications and website subscriptions while unknown companies did. The price of my product will be priced around $9. 99. The other applications do not offer virtual styling services, they only offer style recommendations and fashion updates. I believe that 9. 99 is a good price to offer for the application.
I would also consider going a bit higher, around $15. 00 for the application as well. I do not want to price it too high because I am not sure if consumers would pay moor than $20. For this application.
A free trial will be given for customer to try out the virtual styling experience for a day. Consumers can try out the application and use the sites features as a paid member. At the end of the trial, consumers can purchase the application. I also researched some applications that allow consumers to have memberships options.
“The more you appeal to the masses, the less exclusive you become, and the less value your premium possesses. ” (Sink, 2009). This would allow me to lock consumers into subscriptions.If I were to choose the subscription option it would revive a continuous stream of income for the company and also give consumers different level of memberships. Regular membership is a general subscription to the site and its features. PIP membership would be more in price and offer incentives such as free shipping in specific ordered, sneak previews to new collections, and also in depth personal styling and recommendations. I am not sure which route to go. I would like feedback to make the best decision.
The size of the e-retail industry is constantly growing. Foster research reported that online retail in the U.S. Ill grow at a compound annual rate of 10% from 2012 to 2017. Sales will grow from 225. 5 to 434. 2 billion dollars. Duding the 2014 fiscal year, my company plans to cover 7% of the online retail market duding each quarter.
Gross Margin is about 45-50% in the online retail industry. As for game and application industry, my company can expect to cover about a 5-8% share of the market during the 2014 fiscal year. It was very difficult to find ratios for the gaming industry specifically, so I will use the basic ratios for this part of the business.
Most applications for virtual styling are free.In order to get an idea of how to apply this ratio to my business, I will take a look at game industry producers that use these ratios for their products such as Microsoft and Electronic Arts (EAI). I did find some information about the internet and software industry thorough online financial sites. The internet and software services industry resulted in a net profit margin of 1 1. 6% as of July 29th, 2013, games were 8. 7%. (According to Yahoo! Industry Summary) Sink, S.
(2009). For Ames, Membership Has Now Lost Its Privileges. Breadwinner, 50(40), 26. Blab jag owe per By disaster