Cumberland Metals Case Study Essay

Price: Pricing decisions should take into account profit margins and probable pricing response of competitors.

Third, the price must be high enough to cover costs and make a profit but low enough to attract customers. There are a number of possible pricing strategies. The most commonly used are:

As CMI’s pads are a new product and that the pile-driving industry has paid little attention to cushion pads prior to CMI’s involvement, there is no other manufacturer that dominates the industry and therefore there is major room for growth. The product seems to be capable of generating a recurring revenue stream. There do not seem to be any barriers. Once CMI becomes the first and therefore, preferred provider of these pads, there is little reason for a customer to switch to a

product or service, the target market, and the competition. Pricing your product is an important step that must begin with an understanding of the total cost of the product or service. Markup percentage, gross margin percentage, production costs, non-production costs, and profit must all be considered when deciding price. Promotions and

In order to set right price, company should take into consideration the above mentioned factors as well as characteristic of demands such as elastic or inelastic.

Looking at the market size Cumberland has an untapped market with no real competitors. It is a big opportunity for Cumberland to tap the pad market and become the market leaders. Looking at the size of the market I am surprised that no player has tapped the market yet. The only difficult part would be making people shift from asbestos pads to CMI pads and explaining them the benefits they would have from it because people don’t really care so much about the pads that go in. So the opportunity is great they just need to get the pricing and marketing strategy right.

Pricing is important when marketing a product. The determining factor for the pricing is the material, time to make, amount spent on marketing and promotion of the product. The goal in providing such a product that is moderately

The first recommendation is to implement at the end of stage one, an approval stage. Once the product is tested and gains approval, they should make sure that they have approval from the governments before the product launch. They should also take a look at expanding their product line to something that people are willing to pay their money for. They could find different groups to market the product to beyond athletes and snorers. There may be a market for the product to people who have more of a need for the product, such as asthma,

The company not only raised more than $7.5 million from investors but also has obtained regulatory approvals for its surgical tools in Canada and the U.S.

This is a growing and trending use for the treatment of illness all over the U.S. and will continue to grow as it is showing great results in the field of cancer treatment.

Consumers always base their decisions on price. The price of an item is important as it can influence consumers to purchase the product or not. If a product is out of their price range most people aren’t likely to purchase the product unless

1. What factors influence the pricing decisions for a product such as Glitzz? Analyze these factors and comment on the range of prices that can be set for Glitzz.

Easton Bell Sports, Inc. is a leading designer, developer in sporting good products and accessories. Easton provides products from youth levels to professional athletes, who want innovative and top of the line products. Easton’s design and technology of Composite, Aerospace Grade Fibers, Scandium and Aluminum Alloy’s has led them to be one of the best in cutting edge performance equipment. Easton’s dedication to research and development has brought many new and innovative products, which have set new standards of performance in many different sports. Easton Also believes in expanding and consistently improving existing products is also a

The process in which organizations determine what they will obtain in exchange for their products is called pricing. Some significant factors for pricing include Market conditions, competition, market place, cost of production and product quality.

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).