Eco 561 Essay

Eco 561 Essay Eco 561 Essay Abstract Bling it Apparel and Designs is a custom apparel company that designs and creates original rhinestone embellished apparel. The company guarantees that consumers will purchase apparel that is unique and custom made per order. The company knows that there are some similar online shops that offer the same services and products but there are no local companies. The company’s goal is to offer custom apparel and eliminate long wait time of online orders and shipping time. Providing customers with quick turn around on custom apparel orders will set the local business apart from the online shops that provide the same products. The proposal will present a business that will create custom rhinestone apparel that no other company in the local area has ever presented in the market before. The company will discuss the elasticity of demand and the market structure for the good the company is trying to market. It will also show how the company will develop an increase in revenue through profit-maximizing quantity. It will show the concepts of marginal cost and marginal revenue, pricing and non-pricing strategies, product differentiation, and the barriers to entry. The Proposal Bling it Apparel is a part of the oligopolistic competitive market, a company of the dominated differentiated product and a price maker. The company will show its significant control over pricing and consider the reactions rivals will present in pricing, output, and advertising. The product will be display elasticity of demand because of the change in prices and availability. The product will be extremely elastic to where if a slight change in the price will lead to a quick change in the quantity demanded or supplied. With this product, whether the price increases or decrease will bring about an increase demand, which will give an increase in profit. The products limited availability and uniqueness allows for fluctuation in price. Customers have been known to pay higher prices for unique designs and one of kind items. The popularity of rhinestone embellished items is on the rise with sport moms, cheerleaders, dancers, and gymnast. The product will always be promptly available in the market. To expand business profit, the company will develop and implement price, location, quality, advertising, and service strategies. For example, when deciding on increasing and decreasing prices of the products provided, Bling it Apparel will try to forecast the reaction of online competitors will charge for their new and previously created products. Recommended pricing strategy will be competitive based pricing. This strategy will b e beneficial to Bling it Apparel with it being a small startup company and the economy seeing improvements in the retail market and consumer spending. Suttle (2013), "There are times when a small company may have to lower its price to meet the prices of competitors. A competitive-based pricing strategy may be employed when there is little difference between products in an industry†. Non pricing strategies will include an in house social media advertising medium which will be responsible for expanding brand acknowledgement in the local area. This strategy will be at no additional cost to the company and will have no impact on the products final cost. Bling it Apparel will be a home base business. The decision to operate from home is due to the lack of availability to small business loans as the economy recovers from the recession. Another reason the company decided to operate as a home based business was to cut out on startup ad overhead cost for the company in the first year o f business. Bling it Apparel will exhibit a barrier of entry that will reduce the costs of production of custom made apparel, by creating apparel at a lower cost than of the online competitors but eliminating shipping cost alone. They will exhibit