: Your company is setting up a price and margin waterfall. Which of the following could be used as a unit of analysis? View
: You’ve been asked to find the selling price that allows for the best possible profit from a piece in a new men’s clothing line. If you know the cost of the piece, how could you find the optimal selling price? View
: You are responsible for negotiating a contract to supply materials to build steel hulls and other parts for a large fleet of submarines. Why might you negotiate a contract with index-based pricing? View
: How could a company use a pricing strategy to create an equilibrium between supply and demand when there are an excess number of customers trying to see movies in the evenings? View
: The leading brand of scissors decides to take advantage of back to school sales by increasing the manufacturing price they ask from its retailers, including a large chain of office supply retail stores. How could this decision impact the balance of power? View
: Imagine you work for a large distributor and are currently negotiating a distribution deal with a company that manufactures skateboards. Which of the following is the most advantageous strategy for your company? View
: Review: Which of the following describes an incentive that could be used to resolve margin leakage in the cost to serve category of a margin waterfall? View
: You are an executive for a company that supplies raw materials for skyscrapers. You’re negotiating a long-term contract for reinforced concrete and steel rods, materials with the highest costs for skyscraper developers. Steel costs are also quite volatile. How might you price these materials in a way that is most advantageous for your company? View
: A video game company that charges $15 per year for a game subscription is thinking of increasing the subscription price to $25. The company believes that it will reduce its initial customer base by 30% with this subscription increase. They’ll only retain 30% of their customers in the second year and of those who stay, 60% will remain customers in their third year. Company data shows that it costs $5 each year to service a customer, and the discount rate is 10%. What is their 3-year CLV with the price increase? View
