Transaction Volume ( Per Year ) Price Per Call

1636 WordsNov 28, 20167 Pages
Transaction Volume (Per Year) Price Per Call (in USD) 0 - 60000 USD 3 60000 - 200000 USD 2.50 Above 200000 USD 2.00 The suppliers will reduce price if the transaction volumes ends up increasing above a baseline amount. Suppliers need to base prices on an average baseline volume that is determined based on data collection at the beginning of the contract. AllTell would like prices to decline in conjunction with an increase in transaction volume, so it is reasonable in many cases to not use fixed fees in a pricing structure that varies direct with volume. In the case of high volume, the setup costs are allotted over more units, which results in lower per-unit costs that should be passed on to the company as lower prices. A key issue to focus on in pricing is on is the price per call (PPC). While there are many variations in pricing to consider for the contract, most of the money that AllTell will pay is for the PPC, so this will, or should be the focal point during negotiations. Assessment of issues that may arise - short-term and long-term: 1. Supplier may need access to the company’s database - in the process of handling customer queries the supplier may need to access AllTell’s database to answer the question. This may raise the risk that supplier employees could gain unauthorized access more information in the database than they are entitled to; supplier employees could initiate incorrect changes in the section of the database that they are authorized to

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