Harvard Business Recurled Metal

2034 Words9 Pages
CASE STUDY
Curled Metal Inc.
Engineered Products Division

Marketing Management
Professor João Borges de Assunção
Alexandre Neves, student nº 153011108

Curled Metal Inc. Engineered Products Division

CONTENTS
The Problem Statement ................................................................................................................ 3 Demand Estimation ....................................................................................................................... 3 Cost Estimation ............................................................................................................................. 4 Price Method Proposal
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Engineered Products Division

PRICE METHOD PROPOSAL
One important step in defining the price of any given product is to define an interval where it would be beneficial both for the company and for the costumers. The minimum value that we could possible charge for each product is the average production cost, which is $444 (without tooling) and $208 (with tooling). On the upper side of the interval we have the value that is perceived by the customer. This is the so called Perceived-Value Pricing. Perceived-Value is a multidimensional vector, usually in its dimensions we have: product performance, warranty quality, customer support, company’s reputation, etc... In order to compute Perceived-Value of the CMI cushion pads we are going to compute the saving by using CMI pads instead of the conventional ones. Next will be presented the data

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