W4K employs a value pricing strategy based on the company’s fixed and variable costs and customer perceived value attributed to the products.  The pricing structure of W4K is basic and easy to understand.  W4K’s proposed pricing structure for the projected year is based on an average volume of between 100 and 999 units and breaks out into the following:
Wooden Animals - $7.50
3D Wood Puzzles - $12.00
Geometric Block Set - $11.00

W4K deals in volume with many of its retailer partners.  In light of this, volume discounts are granted and represent an important aspect of W4K’s promotional mix.  The following details the volume discounting price structure:

				Less than 100	100 to 999	1000 to 4999	5000 or greater
Wooden Animals	$8.50		$7.50		$6.50		$6.00
3D Wood Puzzles	$12.50		$12.00		$11.50		$11.00
Geometric Block Set	$11.50		$11.00		$10.50		$10.00

All prices at the W4K on-site retail store are the same as the wholesale prices offered to other channel partners.  This provides the local community with a bit of a discount off regular retail prices and helps to promote visits to the site which in turn creates excellent word-of-mouth advertising.  In addition, policies and procedures are in place to guard against any large volume purchasing occurring through the retail store.

Currently, the woodworking classes are priced at $40 per four hour session for all types of classes.  W4K will raise the prices on woodworking classes 10% to $44 per class session beginning January 19xx.  This is deemed reasonable in the market place and represents the first price increase on the service side of the business in over four years.

Retail customer accounts receive a bill (hard copy or electronic) with 30 day terms itemizing purchases, prices, discounts, and amount due.  As it relates to the service side, classes are partially prepaid and balance billed after the session has been conducted.  Billing in this manner for the classes provides incentive for registered students to follow through with classes and provides opportunities for further product and/or service promotion.