Class: Senior Secondary School 1 (SS1, SS 1, SSS1, SSS 1)
Term: 2nd Term
Week: 6
Age: 15 years
Duration: 45 minutes
Subject: Store Management
Curriculum Theme: Store Management
Previous Lesson: Method of Issuing Stock.
Topic: Introduction to Pricing
Subject Matter: Meaning of pricing, objectives of pricing, market skimming pricing method, product line pricing method, benefits and problems of pricing methods, factors influencing pricing decisions

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

Define pricing.
State objectives of pricing.
Explain market skimming pricing method.
Explain product line pricing method.
State benefits and problems of pricing methods.
List factors influencing pricing decisions.

Affective Domain:

Show a positive attitude towards fair and honest pricing.
Appreciate the effect of pricing on customers and business performance.

Psychomotor Domain:

Use sample price tags to set prices for given items based on simple conditions provided.
Classify given examples as market skimming or product line pricing.

Participate in group discussion on pricing examples in local markets.
Work cooperatively to identify factors that affect pricing decisions in a store.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum
State Unified Scheme of Work
Store Management for Senior Secondary Schools (recommended textbook)
Pricing: Meaning and Common Approaches (Investopedia)
Price Skimming: Meaning and Example (Investopedia)
Product Line Pricing: Meaning and Example (Investopedia)

Instructional Materials

The teacher will teach this lesson with the aid of:

Price lists on cardboard paper
Sample price tags
Pictures of goods with different price ranges (basic, standard, premium)
Whiteboard and marker
Simple scenario cards for pricing decisions

Rationale for the Lesson

This lesson helps pupils understand how prices are set and why prices differ for similar goods in markets and stores. It also helps pupils make simple pricing decisions that can support sales, profit, and customer satisfaction.

Prerequisite/Previous Knowledge

Pupils have observed buying and selling in local markets and understand that goods have prices that can change due to demand, supply, and cost.

Lesson Content/Board Summary

Introduction to Pricing

Meaning of Pricing

Pricing is the process of fixing the amount of money to be paid for a product or service.

Objectives of Pricing

The following are objectives of pricing:

To make profit for the business.
To cover cost of production, purchase, and operating expenses.
To attract customers and increase sales.
To compete effectively with other sellers.
To maintain a good business image and product value.
To gain or protect market share.

Market Skimming Pricing Method

Market skimming is a pricing method where a new product is sold at a high price at the beginning and later reduced as more competitors enter or demand changes.

The following are key points of market skimming:

High initial price targets early buyers who can pay more.
Price is reduced gradually to attract more customers.
Common for new, unique, or improved products.

Product Line Pricing Method

Product line pricing is a method of setting different prices for a range of related products based on differences in quality, size, features, or brand level.

The following are key points of product line pricing:

Products are grouped as basic, standard, and premium.
Higher quality or bigger size has higher price.
Customers choose based on their budget and preference.

Benefits and Problems of Pricing Methods

The following are benefits of pricing methods:

Helps the business plan for profit and control costs.
Helps to position products as affordable or premium.
Helps the business respond to competition and customer needs.

The following are problems of pricing methods:

Wrong pricing can reduce sales or reduce profit.
High prices may drive customers to competitors.
Very low prices may lead to losses or low product value.
Frequent price changes may confuse customers.

Factors Influencing Pricing Decisions

The following are factors influencing pricing decisions:

Cost of goods and operating expenses (rent, transport, wages, power).
Demand for the product and customers’ purchasing power.
Competition and prices of similar goods.
Quality, brand image, and uniqueness of the product.
Government policies such as taxes, levies, and price control where applicable.
Distribution and transport cost from source to store.
Season and market conditions (scarcity or abundance).
Business objectives (profit, market penetration, survival, growth).

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher displays sample price tags and asks pupils why similar goods have different prices in different shops, then links responses to the meaning of pricing.
Pupils’ Activity: Pupils share examples from local markets and respond to questions.
Learning Point: Prices are set for goods based on business and market conditions.

Step 2: Meaning of Pricing

Time: 6 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher defines pricing and gives simple examples using common items and price tags.
Pupils’ Activity: Pupils write the definition and give one example of pricing they have seen.
Learning Point: Pricing is fixing the amount to be paid for goods or services.

Step 3: Objectives of Pricing

Time: 7 minutes
Teaching Skill: Discussion
Teacher’s Activity: The teacher guides pupils to list objectives of pricing and writes correct points on the board.
Pupils’ Activity: Pupils contribute points and copy the final list.
Learning Point: Pricing aims to cover cost, make profit, and attract customers.

Step 4: Market Skimming Pricing Method

Time: 7 minutes
Teaching Skill: Demonstration
Teacher’s Activity: The teacher explains market skimming with a simple product example and shows how price can reduce over time using scenario cards.
Pupils’ Activity: Pupils identify examples of products that may start expensive and later reduce in price.
Learning Point: Market skimming starts with high price and later reduces to reach more buyers.

Step 5: Product Line Pricing Method

Time: 6 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher explains product line pricing using three related products (basic, standard, premium) and different price tags.
Pupils’ Activity: Pupils classify given examples into basic, standard, and premium options.
Learning Point: Product line pricing sets different prices for related products based on features and quality.

Step 6: Benefits, Problems, and Factors Influencing Pricing

Time: 4 minutes
Teaching Skill: Question and Answer
Teacher’s Activity: The teacher asks quick questions to draw out benefits, problems, and factors influencing pricing decisions and corrects responses.
Pupils’ Activity: Pupils respond and list key factors such as cost, competition, and demand.
Learning Point: Pricing decisions depend on business goals, costs, and market conditions.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

Define pricing.
State four objectives of pricing.
Explain market skimming pricing method.
List four factors influencing pricing decisions.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 5 minutes
Teaching Skill: Summary
Teacher’s Activity: The teacher summarizes the meaning, objectives, and methods of pricing and gives an assignment for pupils to write two local examples each of market skimming and product line pricing with reasons.
Pupils’ Activity: Pupils copy the summary and note the assignment.
Learning Point: Pricing methods and factors help a store set suitable prices for goods.

Lesson Keywords

Pricing – The process of fixing the amount to be paid for goods or services.
Objective – A purpose or aim for setting a price.
Market skimming – Setting a high price first and reducing it later.
Product line pricing – Setting different prices for related products based on quality or features.
Demand – The quantity of a product customers are willing to buy at a given price.
Competition – Rival sellers offering similar goods that influence pricing.

Differentiation

Fast learners design a simple price list for three related products using product line pricing and justify their choices, while learners who need support use guided examples to define pricing, list objectives, and identify factors influencing pricing decisions.

Note for teachers using this lesson plan

Use familiar goods and clear price tags to make pricing ideas concrete and easy to understand. Emphasize exam-focused responses by insisting on clear definitions, listed objectives, and well-stated factors, and relate pricing methods to common market experiences.