Effective Pricing Considering Manufacturer and Wholesaler Mark-Ups

Pierogi’s and More’s target price allows the company to gain a 45% mark-up from its products while simultaneously accounting for a wholesaler’s probable mark-up of 30%. The company has a selling price of $5.99 as it aims to remain in the high-end market. It is inclined to offer similar pricing to new customers that would support its notion of superior products. In this instance, the company has to factor in current variable costs of $1.87/dozen and a fixed cost of $0.2. Therefore, a 40% mark-up would require Pierogi’s and more to sell the products at {(1.87+0.20) * (1+0.4) = 2.898} $2.898. Accounting for the wholesaler’s mark-up at 30% means the company can sell the goods at {(2.898* (1+0.3) = 3.7674} $3.7674. Pierogi’s and More would have additional revenues of $2.2226 per dozen, enabling the organization to transition into high-end retail with relative ease. As such, Pierogi’s and More should sell its products to the wholesaler at (5.99 – 1.797 = 4.193) $4.193 by determining that a 30% mark-up from this price leads to its desired retail price. This would enable both parties to achieve this result and prevent the wholesaler from diluting its price if they decide to markdown their prices by gaining room to maneuver if the company offers them the products at its directly marked-up price of $2.898.

Value-based Pricing Mechanism

The company should continue using a value-based pricing mechanism for its products. Pierogi’s and More seeks to integrate itself into the high-end business market. It aims to join the high-end retail business segment that would augment its position through increased revenues from high-income earners. This would allow the business to gauge whether its competitors can take away its market share or may have trouble doing so due to effective marketing (Ray & Yin, 2019). Marketing itself as a superior product to its competitors is an effective tool. While the latter used a low-marketing strategy, Samsung capitalized on htc’s lack of marketing skills to dominate the market despite both companies offering high-quality products. Arguably, htc had better product designs eliciting the first full metal body, but its lack of marketing allowed competitors to take its place relatively easily. Similarly, Pierogi’s and More should continue using its marketing strategy as a superior brand to its competitors, statement may not be far from the truth. However, increasing support for its business through such marketing would see the company dominate its competitors if it has a smooth transition to its novel high-end retail segment.

Marketing Campaign

Pierogi’s and More should develop a web presence to boost its market share using social media. It is an effective and rapidly advancing tool that enables customers to ascertain its presence and communicate with the organization for better service provision. The company should make customer interaction friendly and straightforward, boosting loyalty through such offerings (Dahl, 2021). Pierogi’s and More should continually rely on its high-end marketing design to remain stable in its target area. Therefore, it is crucial to ensure it offers high-quality products that its competitors cannot match. It is prudent to use a system similar to McDonald’s, streamlining service through similar offerings in its chosen locations. Reliability is critical in marketing as it enables customers to confirm the originality and unique nature of a company’s products or services, associating its brand name with positive ideals (Ferrell et al., 2021). Marketing to the high-end market means that Pierogi’s and More should consider selling more meat-based pierogis than those stuffed with other products as they are traditionally more costly than the rest. It should use its social media presence to reach a wider group of potential customers, incorporating their suggestions for a better experience (Evans et al., 2021). Furthermore, it is crucial to note the recent push for sustainability globally and work this into its marketing campaign while meeting its obligations. A sustainable business model would see Pierogi’s and More boost its customer share while integrating technology in its campaign would ensure it has a broad audience while incurring low marketing costs.

Varying Pricing Structure

Pierogi’s and More should offer its products at the same price, whether frozen or fresh. The organization does not incur losses from selling its products similarly while ensuring customers do not view these variations with cynicism. It is crucial to consider the company sells its products at a significantly higher cost and would face issues if the customers perceived higher pricing negatively (Roberts, 2020). It would lose market share s other high-end competitors have not raised prices to match its offerings. Nonetheless, it should consider whether inventory turnover rates for these products to gauge whether such a decision is prudent (Syed, 2020). For instance, frozen products may have a significantly lower turnover than fresh alternatives. In this case, the company should determine if it affects operations and causes a backlog before deciding if they should lower production or costs to boost sales. However, deviating from the marketing plan would impact the company’s brand as a high-end producer.

Slogan -We Offer High-Quality Products at an Affordable price. Pierogi’s and More believes its offerings are superior to its competitors. Its slogan should reflect these values as it is not egregiously priced. The slogan relates to the company’s brand image as the selling price is affordable for the quality it offers to customers. This reverberates with its marketing communication plan that uses such logic to attract customers in the high-end market.


Dahl, S. (2021). Social Media Marketing: Theories and Applications. SAGE PUBLICATIONS.

Evans, D., Bratton, S., & McKee, J. (2021). Social Media Marketing. A G Printing & Publishing.

Ferrell, O. C., Hartline, M. D., & Hochstein, B. W. (2021). Marketing strategy (8th ed.). Cengage Learning.

Ray, S., & Yin, S. (2019). Channel strategies and Marketing Mix in a connected world. Springer Nature.

Roberts, M. (2020). Insider Pricing Strategies: Discover How To Skyrocket Sales And Position Your Business For Ongoing Success! Independently published.

Syed, A. B. (2020). The Power of Pricing Strategy Lidl. WHD Publishing House.

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