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Case of the Pricing Predicament (HBR Case Study and Commentary)
Scott Palmer's most important account, Occidental Aerospace, is pushing for a discount, but Standard Machine Corp., Scott's company, has a long-standing policy of selling its products at list price--discounts are out of the question. Occidental also has plans for two new plants so Standard's bid may affect millions of dollars in future business. And two Asian machine-tool companies have set their sights on Occidental's home market. Has Standard's fixed-price policy outlived its usefulness? In 88205 and 88215, F.G. Rogers, formerly vice-president of marketing at IBM; Bruce Moore, president and CEO of H.R. Krueger Machine Tool, Inc.; Richard T. Lindgren, president and CEO of Cross & Trecker Corp.; and William Whitescarver, president of the Bindery & Forms Press Division of Harris Graphics consider whether Standard's pricing policy can withstand the pressures of new competition and more demanding customers. -
Case of the Pricing Predicament (Commentary for HBR Case Study)
Scott Palmer's most important account, Occidental Aerospace, is pushing for a discount, but Standard Machine Corp., Scott's company, has a long-standing policy of selling its products at list price--discounts are out of the question. Occidental also has plans for two new plants so Standard's bid may affect millions of dollars in future business. And two Asian machine-tool companies have set their sights on Occidental's home market. Has Standard's fixed-price policy outlived its usefulness? In 88205 and 88215, F.G. Rogers, formerly vice-president of marketing at IBM; Bruce Moore, president and CEO of H.R. Krueger Machine Tool, Inc.; Richard T. Lindgren, president and CEO of Cross & Trecker Corp.; and William Whitescarver, president of the Bindery & Forms Press Division of Harris Graphics consider whether Standard's pricing policy can withstand the pressures of new competition and more demanding customers.