Are the Company’s Prices and Costs Competitive?

Topics: Inkjet printer, Cost, Price Pages: 2 (329 words) Published: May 23, 2013
Are the company’s prices and costs competitive?
The pricing system as well as cost deployed by an organization contributes to a large part in its competitive edge. Notably, in the current competitive world meticulous consideration is crucial in both pricing and costing on either products or services. Considering pricing as well as costs in Xerox, an organization dealing in consumer printer, aggressive approach is noticeable in the techniques utilized to make sales and cope with competition in the industry (Weigand, 224). According to market patterns, prevalence of small entities is on inkjet printer. The copy shops perform the task at a cost of 50 cents for every page printed. Also, charging consumer 25 cent is relatively cheaper than the shops though higher than prices in the laser printers. However, the 10 cent for every page printed is a competitive price deployed by Xerox. On this ground, the company competes favorably in the market and eventually dominates the industry based on its affordable prices. The lower cost is the fundamental step towards satisfying a huge number of customers in the industry via offering relative cheaper services than copy shops as well as laser printers. In addition, the 10 cents highlights Xerox basis in developing competitive pricing to cope with the prevailing competitors in the market. The fact that Xerox costs in printing is lower than both copy shop and laser printers the company not only overcomes the prevailing competition but also reflects on customer demands. Moreover, Xerox gives free printers to small enterprises besides lower prices on its services. From this perspective, Xerox is highly competitive based on its pricing and costs (Weigand, 225). The competitive approach of the organization is enhanced by free printers to small business entities. This not only boosts the competitive advantage of the company in the industry but also facilitates Xerox to dominate the market....
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