Document Type
Conference Proceeding
Publication Date
Spring 2-12-2024
Abstract
This paper addresses challenges encountered by undergraduate students when tasked with crafting marketing plans, particularly in determining realistic costs and prices. Faculty can proactively estimate the Cost of Goods Sold (COGS), markup percentages, and retail prices for a range of products. Three approaches are presented to guide this process.
The first approach is using real-life products featured on Shark Tank. By extracting accurate cost information, it is possible to detail costs and prices at each stage of the supply chain. The second approach is to start with production costs. This approach allows faculty to work from the retail price and the approximate COGS to determine the markup percentages. Estimating costs based on average industry markups is the third approach.
By employing these approaches, faculty members can guide students in a more realistic estimation of costs, enhancing the quality of marketing plans at the undergraduate level.
Recommended Citation
Stansifer, M. L. (2024). Estimating costs and markups for marketing plans: Three approaches. The 2024 Association of Marketing Theory and Practice Proceedings, 25. https://digitalcommons.georgiasouthern.edu/amtp-proceedings_2024/25
