Page 43 - Business-10

Sample answer:
Of course, we constantly look for ways to keep manufacturing costs to a minimum.
We follow a lot of economizing strategies and we survey the market regularly to check
how prices fair compared to the rest. We make adjustments depending on our status.

1. You are informing your staff that you will lower the price of your products.
Explain the following points to the team.

a. the process underwent by setting of product price
b. the publicity that you will use to inform the public about the price
change

Sample answer:
Good day team! We would like to inform you that our items will undergo a drastic price
reduction due to some reasons. First, our efforts at economizing have finally paid off.
It has created a big amount of savings in our budget. This has allowed us to lower our
prices for the benefit of our buyers. This is also good for us because we foresee an in-
crease in the number of buyers once we lower our prices. We need to inform the public
about this change as soon as possible. We will tap our marketing and publicity team
to take care of this. Again, congratulations to us for meeting our mark and we hope to
gain a lot from this big change. Thanks again and good day!

2. You are informing your finance group about the decision of the board of
directors to give a big discount to your buyers for one season. Explain the
following points. You may add other plausible reasons.
a. Reasons for the discount
b. Effect of the discount on profits

Sample answer:
Good morning to all of you! This meeting has been called to explain the reasons for
the discount that we will have for one whole cycle. You must be wondering why we
are giving this discount. We have decided to lower our prices rather than lose a bigger
amount of money. Sales have been drastically affected by the economic recession.
This is our way of getting by. This will naturally affect our profits. However, if we still
manage to sell even half of our products, we will be able to break even. That is our goal
for the moment. We hope that you will be one with us in achieving it.

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