Economics Essay Example | Topics and Well Written Essays - 500 words - 19

Economics - Essay Example Will has to invest to raise the amount of visitors entering his website. Will has to log of the amount of traffic the website receives on a daily basis and compare it to the sales generated each day. Three months is adequate trial period. Will has to spend money hiring an online expert to increase the online traffic the online store receives. After the trial period Will has several options. He can raise the price of his items by $5 each and test for a month if the demand for the products changes. It is possible that it might stay the same and that way the company can raise his overall profits. Another strategy which is my primary recommendations is to lower the prices of both types of products. According to the law of demand and supply when a manufacturer lowers the price of the product the demand increases. I would start with low price increase of $2 on the non-copyright material and $1 on the copyrighted material. The cheaper product can have a higher price reduction because there are no variable costs associated with them. In the case of copyright material there is a $5 royalty fee to consider. After a period of three months I would evaluate the results to then move forward with a more aggressive discounting strategy of final sales prices of $5 and $12. The most likely scenario is that if Will increases his online mar keting budget and reduces the price of the product the revenues of the company should reached the $100,000 revenue per year benchmark in a short period of time. The sky is the limit for this innovate product created by Mr.