What types of costs should bowlin evaluate

Assignment Help Management Theories
Reference no: EM131385142

SITUATION
Paul Bowlin owns and operates a tree removal, pruning, and spraying business in a metropolitan area with a population of approximately 200,000. The business started in 1975 and has grown to the point where Bowlin uses one and sometimes two crews, with four or five employees on each crew. Pricing has always been an important tool in gaining business, but Bowlin realizes that there are ways to entice customers other than quoting the lowest price. For example, he provides careful cleanup of branches and leaves, takes out stumps below ground level, and waits until a customer is completely satisfied before taking payment.

At the same time, he realizes his bids for tree removal jobs must cover his costs. In this industry, Bowlin faces intense price competition from operators with more sophisticated wood-processing equipment, such as chip grinders. Therefore, he is always open to suggestions about pricing strategy

Question 1 What would the nature of this industry suggest about the elasticity of demand affecting Bowlin's pricing?

Question 2 What types of costs should Bowlin evaluate when he is determining his break-even point?

Question 3 What pricing strategies could Bowlin adopt to further his long-term success in this market?

Question 4 How can the high quality of Bowlin's work be used to justify somewhat higher price quotes?

Reference no: EM131385142

Questions Cloud

Is my business storage or real estate : What pricing strategy would be effective in combatting the existing contractual relationships between potential customers and competitors?
How does mcdonalds develop long-term relationships : B6512.52- How does McDonald's develop long-term relationships in a foreign country through its vendor sourcing strategy and marketing campaigns? Can McDonald's improve this process? If so, how? If not, explain why.
Discuss about the post given below : The learning outcome of this assignment is to understand how to conduct research on a given topic. Also, the outcome includes the application of your research about strategic human resources planning for your HR practice. Research and staying curr..
What factors shape an organizations external competitivenes : What factors shape an organization's external competitiveness?What is a relevant market? What difference does it make when determining people's pay? What is broadbanding? Discuss advantage and disadvantages.
What types of costs should bowlin evaluate : What would the nature of this industry suggest about the elasticity of demand affecting Bowlin's pricing?- What types of costs should Bowlin evaluate when he is determining his break-even point?
Write a summary of client needs : Your client, SmartClean, Inc., is a cleaning service for office and industrial locations. SmartClean has been in business for 5 years and has shown steady revenue growth each year. The owner originally started the business using a business loan. T..
Prepare a report on your findings : Interview a small business owner regarding his or her pricing strategy. Try to ascertain whether the strategy being used reflects the total fixed and variable costs of the business. Prepare a report on your findings.
Describe the credit management procedures : Ask several small business owners in your community who extend credit to describe the credit management procedures they use to collect bad debts. Report your findings.
How has wireless technology changed your quality of life : How has wireless technology changed your quality of life or your work environment? How are wireless technologies used by organizations to form a communication channel with clients?

Reviews

Write a Review

 

Management Theories Questions & Answers

  Two major types of financial analysts

There are two major types of financial analysts: buy-side and sell-side. Buy-side analystswork for investment firms and make share recommendations that are available only to themanagement of funds within that firm. Sell-side analysts work for brokera..

  Describe the new product

Describe the new product.

  Determine how sun best could use a gantt chart

Determine how Sun Best could use a Gantt chart to help it coordinate pilots, flight attendants, and daily flights.- Using Excel, create a sample Gantt chart highlighting the different types of activities and resources Sun Best could track with the ..

  Provide a brief introduction to the organisation

Provide a brief introduction to the organisation

  How would you proceed in a massive organization

Write an overview of the promise you see for this system, the frustrations, or problems you may face? Propose other solutions and give reasoning for your choice. How would you proceed in a massive organization

  Analysis of the behaviors of supply chain networks

Provide an analysis of the behaviors of supply chain networks and supply chain drivers in your memo. Explain how supply chain impacts distribution of assets and resources.

  How can an organization have a culture

How can an organization have a culture

  How traditional pay methods differ from incentive pay method

How do traditional pay methods differ from incentive pay methods? Define individual, group, and companywide incentive plans and give examples of each.

  How you will attain product knowledge about the item

Select an organisation with which you are familiar t-provide the context for this project. You have been asked t-purchase a new laptop computer. Provide the following information relating t-the purchase-explain how you will attain product knowledge a..

  Describe and evaluate the market forces

Present a summary for each topic tying together the information learned about that topic. Describe and evaluate the market forces, current trends, and changes in drug benefit programs over the last fifteen years. Discuss basic approaches and techniqu..

  What is the optimal production schedule for this firm

1 What is the optimal production schedule for this firm?

  What roles do the evoked set, inert set

What roles do the evoked set, inert set

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd