Golf: Pro Shop - How is the average price calculated for the market study?

This article is intended for students. 

The average price reflects the selling price in each of the three categories (low-end, mid-range or high-end), weighted by the number of items purchased in each category.

In the market study for the pro shop, students can only see the average price. No details concerning the competitors’ price lists are provided.

The first point to consider is your positioning relative to competitors targeting the same market segment. Are their average prices higher or lower?

The simulation calculates each pro shop’s positioning based on the proportion of items in the low-end, mid-range and high-end categories.

The second point to consider is your pro shop’s positioning with regard to the other services offered at your course. Does the pro shop sell items suited to the clientele of the golf course? The positioning of the pro shop and the other golf course services should be consistent.

• Related Articles

• How to access the market study

  This article is intended for students and instructors. This article is for Entrepreneurship, Management and Marketing simulations. You can consult the market study by clicking on the icon to the right of the title for each decision. The market study ...

• Golf: How is the estimated budget calculated?

  This article is intended for students. In the Golf simulation, the revenue projections depend on the targets for the number of games sold, as set out by the Chair of the Board. For example, if the target is 10% higher than the previous year, the ...

• Kayak: How is the Estimated Budget calculated?

  This article is intended for students. Each year, we present the projected revenues based on the sales targets issued by the Board Chair. For example, if the target is 10% higher than the previous year, the simulation displays the expenses and ...

• How is the price determined for unsold kayaks at year-end?

  This article is intended for students. This article is for the Entrepreneurship simulation. At the end of each year, most companies will have some unsold kayaks in their warehouses. To find out exactly how many are left in the inventory, check the ...

• Video Game: How is the Estimated Budget calculated?

  This article is intended for students. In the Video Game simulation, revenue forecasts depend on your sales forecasts for each of the games (see the product portfolio form). Some expenses depend directly on your budget decisions regarding promotions, ...