Pricing Strategy

[Pricing Strategy]

[Name]

[Course Title]

[University]

[Instructor Name]

[Date]

Pricing Strategy

Overview of the Product /Service

The service that is being discussed in this paper is an IT Outsourcing service that aims to provide its IT related services and solutions to the firms that require such IT solutions , techniques , and infrastructure development and maintenance but do not have enough resources or expertise to have them on their own . This service would be provided by the in-house teams and as well as the vetted freelancers who will act

as a back-up team for in-house ones . By utilizing the advantage of time difference across different countries , technicians can develop solutions for clients throughout

Overall Costs

The setting up of the IT Outsourcing Business would take around two months to actually step in the outsourcing business and attracting clients . The costs that would incur in setting up the business along with other variable costs would be related to the purchase of land building or office space , technology , machineries or equipments , office necessities , furniture , and hiring of labor . This was the first time or fixed investment moreover , the variable costs keep on incurring such as , payment of staff members , marketing costs , taxes , and utility bills The fixed investment was around 20 million dollars whereas , the variable costs incur at around 10 ,000 per month

PRICE SETTING

Considering all these costs , fixed and variable costs , the prices would be set up depending on the level or quality of services being provided In other words , the...