Case Of The Pricing Predicament Week 2

Topics: Price, Competition, Value Pages: 1 (603 words) Published: May 10, 2015

Case of the Pricing Predicament
In the case of Standard Machine’s pricing predicament, Occidental Aerospace’s loyalty might have been established on Standard being the exclusive supplier, and not on Standard efficaciously exhibiting the value of their product. Whether the client is truthful or not in what is being conveyed concerning the former competitors, opposition to Standard Machine’s price potential is a consequence of one of four things: Standard Machine’s product is not extending very much value as expected, the price is merely too high comparative to the value, Occidental does not interpret the value, or Occidental has discovered how to feat Standard’s pricing process. Whatsoever the understanding, it contributed to inefficient pricing, which ensued in the opposition. The contiguous task is to ascertain how to address the unforeseen negotiation and the exclusion to the fixed price policy. The second task is to decide how to keep Occidental Aerospace’s account. One must ask why the pricing is useless. Scott’s cadence of communicating exceptions disclosed to Joann that there was no price wholeness and a negotiation was possible. Good policies modify prices to convert along the required curve without altering anticipations in ways that cause the demand curve to “change” negatively for succeeding purchases. Inadequate pricing policies produce motivators for customers, sales reps, or competitors to conduct in ways that will counteract future sales or customers’ willingness-to-pay. Perchance Standard Machine’s fixed price policy was a consequence of product-led value creation; plus they applied a cost-plus method to cover fixed costs and attain an in demand profit margin. As a contiguous result to this one piece of equipment, Tony should tell Scott that we weren’t be able to come down on the price of the single purchase. Tony should then authorize Scott to extend discounts with repetition or mass orders in the future. Scott would explain the...
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