Pricing - McGraw-Hill Introduction to Business

[VIDEO] Why is Everything Getting So Expensive?

March 10, 2023

Prices on everyday products like groceries and diapers have increased dramatically in the last couple of years, with inflation often being identified as the culprit. This video takes a close look at the potential causes of the post-pandemic trend of rising inflation, examining why supply chain issues and plain old markups could be responsible for ever-increasing prices.

Questions:

What are the potential causes of inflation outlined in this video? Which factor do you think is the most likely cause Continue reading →

[VIDEO] How Commodity Markets Work

March 3, 2023

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Florida’s orange crop is shrinking year after year, sending commodity prices skyrocketing for orange juice concentrate. This video examines the intricacies of commodity markets through the lens of concentrated OJ, looking at concepts like futures contracts and how they affect both farmers and retailers.

Questions:

Why has Florida’s plummeting orange production caused juice prices to increase significantly?
What are the benefits of futures contracts for farmers and manufacturers?

Agriculture, Commodities, Food & Drink, Operations Management, Pricing, Product Distribution, Retail, Supply & Demand

Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 19: Securities Markets, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 9: Production and Operations Management, Videos

Egg Prices Continue to Soar as Inflation Starts to Fall

January 27, 2023

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Food prices hiked by inflation have taken a toll on Americans’ wallets for more than a year, although economists say that costs for a number of commodities are finally starting to fall. But that has not been the case with eggs: the average U.S. price per dozen hit $4.25 in December 2022, up from $1.79 a year earlier. The situation is especially bad in costly markets like California, where 12 Grade A large eggs go for an average of $7.37. Continue reading →

Ethics, Food & Drink, Operations Management, Pricing, Product Distribution, Regulation, Supply & Demand

Bonus Chapter A: Business Law, Chapter 15: Distribution, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management

How Some New Yorkers Earn Six Figures by Walking Dogs

January 25, 2023

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When Bethany Lane moved to New York City after graduating from college, she immediately looked for ways to make money in her expensive new home. “I had to pay my rent and student loans, so I went on Craigslist,” she said. “I saw that somebody would pay me to walk dogs. As an animal lover who is obsessed with dogs, it was perfect.” The job worked out so well that by 2014 Lane founded Whistle & Wag, a boutique pet Continue reading →

Entrepreneurship, Marketing, Pandemic, Pets, Pricing, Sole Proprietorship, Supply & Demand

Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 5: Forms of Business Ownership, Chapter 6: Entrepreneurship

[VIDEO] How Junior’s Bakes Millions of Cheesecakes

November 11, 2022

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The New York bakery Junior’s has been selling enormous cheesecakes to customers since 1950, but 2022 has probably been the toughest year for the company since its founding. Along with examining how a cream cheese shortage and skyrocketing ingredient prices have threatened Junior’s bottom line, this video also examines the company’s history and the intricate production processes for its many baked goods.

Questions:

How have rising ingredient costs affected Junior’s business?
What role does automation play at Junior’s Continue reading →

Entrepreneurship, Food & Drink, Manufacturing, Marketing, Operations Management, Pricing, Product Distribution, Supply & Demand

Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Videos

Enthusiasm and Inflation Drive Increased Halloween Spending

October 28, 2022

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After years of unease, this year Americans are approaching holidays like Halloween with a level of enthusiasm not seen since pre-pandemic times. According to a survey from the National Retail Federation (NRF), 69 percent of consumers plan to celebrate Halloween this year, an amount that is on par with the stats from 2019. “As consumers continue to return to pre-pandemic behaviors, retailers are prepared to meet that demand and help make this holiday a fun and memorable one,” said NRF Continue reading →

Global, Halloween, Holidays, Inflation, Marketing, Pricing, Product Distribution, Promotions, Supply & Demand, Supply chains

Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 9: Production and Operations Management

Counterfeits Threaten Multi-Billion Dollar Sneaker Market

October 5, 2022

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The global sneaker market has grown into a massive $72 billion industry where collectors often accumulate hundreds of pairs of limited-edition shoes from giants like Nike and Adidas. Some lines go on to command huge prices on the resale market, such as a collaboration between Nike and ice cream maker Ben & Jerry’s called Chunky Dunky. Originally sold for $100, these shoes now sell for as much as $1,000. High price tags like these don’t just attract the attention of Continue reading →

[VIDEO] Elasticity: Determining How Companies Price Products

September 28, 2022

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In recent months, CEOs at leading corporations have been talking a lot about “elasticity” with their shareholders. As Americans contend with rising prices due to inflation, companies are concerned with just how elastic their pricing practices can be. This video examines the concept of elasticity and the role it plays in determining how companies price products.

Questions:

What is price elasticity, and how is it affected by inflation?
What are some ways that companies like Procter & Gamble try Continue reading →

Branding, Elasticity, Inflation, Marketing, Pricing, Product Development, Product Distribution, Supply & Demand

Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Videos

While Other Prices Rise, AriZona Iced Tea Remains 99 Cents

April 19, 2022

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As companies continue to face climbing costs, many businesses are responding by either raising prices themselves or reducing the size of their product offerings. But there’s at least one company who hasn’t surrendered to the effects of inflation: 23-ounce cans of AriZona iced tea remain 99 cents, the same price as when they hit the market 30 years ago. So is AriZona somehow immune to recent price increases? Not in the least, considering that the cost of aluminum has Continue reading →

Ethics, Food & Drink, Inflation, Marketing, Pricing, Product Distribution, Promotions, Supply & Demand

Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility

[VIDEO] Shrinkflation May Leave Fewer Chips in Your Bag

April 15, 2022

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As businesses across the globe contend with rising inflation, many companies are cutting costs by reducing the size of consumer goods and hoping buyers don’t notice. This video looks at this growing trend of “shrinkflation” and the risks that companies take when they downsize snacks.

Questions:

Why are many companies responding to rising costs with “shrinkflation?”
What risks do companies take when they alter the packaging or size of consumer goods like snacks?

Branding, Ethics, Food & Drink, Inflation, Marketing, Packaging, Pricing, Product Distribution, Supply & Demand

Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Videos