What are the two most important considerations when determining price points?

The two most important considerations when determining price points are values added services and external factors. Values added services refer to the additional benefits or features that enhance the appeal of a product or service, potentially influencing customers' willingness to pay. For example, a golf facility that offers personalized lessons, advanced equipment rentals, or exclusive member events can justify a higher pricing model due to the enhanced experience provided to the customer.

External factors include market conditions, competition, economic trends, and customer demand, which can directly affect pricing strategies. Understanding these dynamics helps ensure that the price set is competitive, aligns with market expectations, and is responsive to fluctuating demand or changes within the golf industry.

In contrast, while brand awareness and advertising costs play a role in overall marketing strategy, they do not directly correlate to the intrinsic value offered to customers and their impact on pricing. Product origin and manufacturer may influence perceived quality but are not the primary drivers in establishing price. Additionally, sales volume and shelf space are more relevant to retail dynamics and may not directly apply to price determining in the context of golf operations.