What is the differentiation value offered

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Reference no: EM133878271

Problem

Ludy Mechanical Corporation has developed a new industrial grinder model YS-48 that has been designed to outperform a competitor s best-selling industrial grinder. Model YS-48 has a useful life of 100,000 hours of service and its operating cost is $0.90 per hour. In contrast, the competitor s product has a useful life of 20,000 hours of service and has operating costs that average $1.50 per hour. The competitor s industrial grinder sells for $169,000. Get the instant assignment help. Ludy has not yet established a selling price for model YS-48. From a value-based pricing standpoint what is the differentiation value offered by YS-48 relative to the competitor s offering for each 100,000 hours of service?

Reference no: EM133878271

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