Pricing Strategy Business Report for the Big D T-shirt Shop Analysis

This business report assesses pricing strategies for the proposed Big D T-shirt shop, considering various factors such as ink pollution, corporate social responsibility (CSR), and market competition. The report analyzes the costs associated with managing ink pollution, including the use of eco-friendly inks and artist paints, and proposes strategies for ink disposal. It highlights the importance of sustainability and CSR in the apparel industry to attract customers and gain a competitive advantage. Based on the analysis, the report recommends a cost-plus pricing strategy for the Big D shop, considering both production costs and profit margins, while also suggesting the use of competitive-based pricing tactics. The report also references relevant literature and online resources to support its findings.

BUSINESS REPORT

EXECUTIVE SUMMARY
At the time of opening a company or any kind of business, various factors have to
consider which helps to assess positive and negative impact. Along with this, it supports to
entrepreneur in order to determine cost of products and pricing strategy as well. The present
study describes proposed pricing method which will be the best suitable for potential Big D T-
shirt shop. For this, recent developments of T-shirt printing industry are undertaken along with
level of ink pollution. On the basis of analysis, cost plus pricing strategies is proposed which
should consider to the entrepreneur of Big D shop.

TABLE OF CONTENTS
PURPOSE OF THE REPORT.........................................................................................................1
MAIN BODY...................................................................................................................................1
Cost of dealing pollution........................................................................................................1
Ways to manage ink pollution and cost of it..........................................................................1
Place where ink should put and delivery fee for this..............................................................2
Proposed pricing strategy.......................................................................................................2
REFERENCES................................................................................................................................3
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PURPOSE OF THE REPORT
Purpose of the present business report is to provide information about the sustainability
as well as corporate social responsibilities situations in the industry of t-shirt printing. Apart
from this, level of ink pollution which comes into existing due to printing t-shirts is addressed for
assessing cost which will incur in the upcoming Big D business. On the basis of such all the
factors effective pricing strategy is proposed to the management in order to sale products.
MAIN BODY
Cost of dealing pollution
In any of the market or industry, pollution and some other conditions are always their
which affects to the sustainability of business. In the present case study, entrepreneur is going to
open a Big D shop in t-shirt printing industry. On this particular sector, there is huge negative
impact of environmental as well as social aspects. Due to which the firms unable to sustain in the
market for long term. After considering this condition of t-shirt printing sector, the upcoming
business should employ effective strategies to sustain. Apart from this, level of competition in
the apparel industry is very high because huge number of firms are operating their (Australian
Industry Report 2016, 2016). In the condition of cut-throat competition, new proposed shop must
take responsibilities of corporate social welfare (CSR). It leads to attract more number of
customers and gain competitive advantages in the t-shirt printing industry. Therefore, objective
of sustainability will be easily resolved up to the higher level. Cost of CSR will be moderate for
the shop but in exchange to this it will generate huge sales i.e. worth $1,50,00 per year.
Henceforth, cost of dealing pollution for the new Big D shop will be low to moderate.
These both the terms like sustainability and CSR create impact on the decisions of pricing
of t-shirt up to greater level. For example: if higher cost imposed on the shop for sustaining and
doing social welfare then price will be charged high by the management and vice-versa.
Ways to manage ink pollution and cost of it
In the t-shirt printing industry, ink is one of the highly important resources because it is
one of kind of base to print t-shirt. Level of ink pollution in the Australia is moderate to high and
in this condition if entity not manage it then creates negative impact on the whole country.
Therefore, using eco-friendly inks which not contains those kinds of aspects which incur
pollution this condition can be managed. In addition to this, the entrepreneur needs to consider
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artist paints rather than ink for printing t-shirts which will be highly effective strategy (Stouffer,
2016). When looking at the cost aspect then it will impose little more expenses because price of
ink is lower as compared to artist paint. Further, cost of artist paint is worth $8.5 per Litre. In
exchange to increasing costs with few proportion ink pollution situations will be managed up to
the greater extent.
Place where ink should put and delivery fee for this
In the above analysis, strategies for managing and reducing ink pollution are explained.
Further, until if ink comes out from the Big D shop while printing t-shirts then it should put into
the dumping area. The reason is that, those wastages come out from the industries are used by
some firms for reusing and make them productive (Hocking, 2016). Cost of delivery in order to
put ink into dumping area will lower which is worth $180 per 55-gallon drum. Due to this
particular technique overall pollution level will be affected in favourable direction and make the
environment better.
Proposed pricing strategy
After considering the above analysis it can be observed that level of cost for majority of
the aspects is low or moderate for the Big D shop. When it considers corporate social
responsibilities and ink putting strategies into dumping area then costs are at the lower or
moderate level. However, for managing ink pollution when the entrepreneur uses artist paints
then it will take more charges. On the basis of these all, it can be proposed to the Big D shop that
it should employ cost plus pricing strategy. The reason is that, suggested method covers overall
cost of production and margin can be charged by entrepreneur itself (Nagle, Hogan and Zale,
2016). Along with this, sometimes it needs to use competitive based pricing tactics also because
level of competition in the t-shirt printing industry is high.
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REFERENCES
Books and Journals
Hocking, M. B., 2016. Handbook of chemical technology and pollution control. Elsevier.
Nagle, T. T., Hogan, J. and Zale, J., 2016. The Strategy and Tactics of Pricing: New
International Edition. Routledge.
Online
Australian Industry Report 2016, 2016. [Online]. Available through:
<https://industry.gov.au/Office-of-the-Chief-Economist/Publications/
AustralianIndustryReport/index.html> [Accessed on 23rd September 2017].
Stouffer, H., 2016. Turning Carbon Air Pollution into Artist Paints and Inks. [Online]. Available
through: <https://creators.vice.com/en_us/article/4xq9ed/turning-carbon-air-pollution-into-
artist-paints-and-inks> [Accessed on 23rd September 2017].
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