Siebel Pricing

These databook reductions reflect a multiplier of 3.5. This higher multiplier creates some assurance for us regarding the program success absent a mutually agreed upon share or volume targets for this time period. Examples of the databook price reductions are provided in Table A (attached). Table A is not all inclusive; the price reductions will apply to all offered products within the families included in this proposal. Dana will work with PACCAR to define a complete list of effected data book codes. The intent of this 3.5 multiplier is to close the gap of Dana’s data book pricing with competitive

Based on the costs of SafeTrip’s software and the EasyBands that the company has to invest in, it has established the selling price in order to get profits over the final product. In that sense, below is the detailed price’s information.

First, we have identified if there is really an insufficiency in the amount of selling prices set by the Sales Department, in reference to Exhibit 1 of the case. We did this through identifying the maximum amount of overhead costs that the company can incur for the three products and comparing it with the total overhead costs. See Table 1 for details.

Introduction: Jason Jowers, who had recently been hired by the computer manufacturer, Atlantic Computer, needed to devise a pricing plan for the company’s newest products: The Atlantic Bundle. This bundle contained the Tronn server and its corresponding software, the PESA. After an initial marketing meeting with a few key players, Jowers had input from the head of the server division (Matzer), the director of the division’s R&D team (Jones), and the director of new product marketing (Fowler). In addition, Jowers also needs to take into consideration the thoughts of the sales department, lead by Jairo Cadena. Atlantic’s biggest competitor is Ontario Computer, Inc, which is a cost cutter in the industry, and

After analyzing the results from the previous quarter, it was determined that the prices set for each segment were not sufficient. Product sales priority were also not properly adjusted. With the R&D investments, sales priorities needed to be changed for the main focus to become the most profitable market segments. Prices were not competitive which in turned decreased revenue, market share, and profitability. To become more competitive we altered the prices in each market segment. The Workhorse product was the first to change, the price was lowered to $2500 in an attempt to increase sales; at this price Team 4 was still making a profit on this product, as well as making the price much more competitive. The Workhorse sales priority was also lowered to 3rd in Americas and 4th in APAC and EMEA. This product was not selling as well as we had hoped, and was no longer as profitable as it once was which led to this decision. Next, the Innovator product’s price was adjusted; this involved a price increase to $4100. This price was adjusted to include the new

To compare the results of the two costing systems, we found that orders require manual entering, or need desktop deliveries are less profitable than customers who demand less in terms of customized services. The existing cost system does not provide management accurate costs. Above tables in question two reveal that Midwest¡¦s existing cost system distorted cost by assigning too much cost to the order 1, 3 & 5 and not enough cost to the order 2 & 4. In other words, order 2 & 4 exhibit lower costs under the existing system than under the ABC system. This could explain the loss Midwest Office Products faced for the year 2003. On the other hand, order 1, 3 & 5 have lower costs under the ABC system than the existing system. This means Midwest Office Products¡¦ competitors could sell their comparable products at a lower price because they realize it costs less than Midwest¡¦s existing system has indicated.

The price is set to a penetrating price of £90 ti be increased to £150 customers add more features to their product . An estimate of 50% profit margin is to be achieved as the marketing force on direct sales and or campaigns will be carried out on low cost .

On the other hand, if the company increases the cost of X6 tablet to $450 and R&D to 40% it would mean that the customers pay the same for the tablet as they pay for other competing tablets in the market. In that case, it would call for a decision on the side of the customer based on their loyalty for them to purchase the tablet. In so doing, the organization will register a sale volume of $1, 854, 036 in 2014 and $2, 337, 247 in 2015. If the company will increase the price further to $470 and increase R&D to 45%, then tablet X6 will be less expensive for customers to buy than competing tablets. With that change, the company will make sales of 2, 337, 247 in 2014 and 1, 180 751 in 2015. The reason for the decline will be because the product will have reached the shakeout stage where the number of new customers will progressively decline (Calvin, 2002).

The second phase of this project, pricing new system, deals with the defining of requirements for the business system, exploring solution alternatives, and determining economic and technical feasibility. Ted Y. is the responsible manager for realization of all tasks and subtasks; he has been allocated $6098.40 for completion for this phase of the project development.

As we develop further into the Fidget Cube, pricing for consumers should be reasonable globally, as the pricing strategy for this marketing plan will Market- based pricing (Sharp 2013). Furthermore, the Fidget Cube also needs to consider the price of production and distribution of the product. The price of the product must not excessively fall below, as competitors may follow and this may have a negative impact on the economy and for this reason cost-based pricing will also be included (Sharp 2013).

As is known, pricing is one of the most important steps for business plan which needs good research, calculations and formulations. There are different pricing strategies to put into effect due to the market and product conditions, such as premium pricing, penetration pricing, economy pricing, price skimming(Voice Marketing, 2012). These four pricing strategies are main pricing policies. They form the bases for the exercise. However there are other important approaches to pricing. These pricing strategies are: Psychological pricing, product line

Briefly describe the pricing structure that is used with this product and explain the benefits of this method.

Team 4 made the judgement to not adjust either brand because customer wants and needs did not change from the previous quarter. The group was confident in the products that were developed in the last quarter, and determined it would be best to stick with the products that were strategically developed in the previous quarter. The first decision made this quarter was the pricing strategy for each of Team 4’s brands. Here, the team reviewed what customers were willing to pay per region in each of the markets chosen; Team 4 also used a tip given by marketplace live; that in this quarter each brand will sell about 250 units each. This lead the group to determine what the cost of production would be for each product. Based on the cost of production and what customers were willing to pay, Team 4 decided it would be best to set prices to allow the company to earn an $800 profit on each product. Prices were set at the following for each brand: RSX9000 - $3450 and Vivaldi - $2750. At this price, each brand would be profitable and would give Team 4 the opportunity to accumulate some revenue to offset the expenses from the previous two quarters without exceeding what customers were willing to pay. Each brand was given a price rebate of $150 in attempt to attract more customer purchases. Team 4 also implemented point of purchase displays for each of the brands to attract customer purchases further.

Atlantic Computer is a leading developer company of High Tech Servers; it has recently started manufacturing Basic servers and now company is looking to decide the pricing of the servers based on the four models given in the case i.e status-Quo pricing, competition based pricing, cost-plus pricing and then there is value-in pricing.

Briefly describe the pricing structure that is used with this product and explain the benefits of this method.