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Sales-Pro Technologies

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In this case, Sales-Pro Technologies is trying to set the pricing for a capacity upgrade to the CPX servers that Sales-Pro offered. In order for this meeting to be successful, Sales-Pro Technologies needs to come up with an appropriate pricing strategy that every team member would accept. The most beneficial strategy for the company is to maximize sales without jeopardizing the customers’ satisfaction. This is difficult because every team member has his or her own ideas and opinions about the best way to maximize market share. It is important for Sales-Pro to quickly come up with an appropriate price book update in order to get it in print, on the website, and out to the sales force. Sales-Pro Technologies has the reputation of being the market share leader in customer relationship management servers for the sales staffs for small to medium sized companies. In order to keep this reputation Sales-Pro must be sure to price both upgrade options appropriately to complete both objectives. There are three proposals that need to be taken into consideration. CPX product manager, Tad Erickson, made the first proposal. Tad has based his recommendation on keeping the margins at the highest percent possible in order to maximize profit and avoid losing additional money from initial costs. This is a huge pro for a company because a 90 % margin rate is hard to maintain. However, there is also a con to this recommendation because the customers could backlash and pressure to reduce prices if the customers could figure their margins based on pricing. Jeff Bryan made the next proposal. Jeff is the district sales manager and thinks it would be beneficial to price the upgrades at the difference of the original cost. He thinks it will be easy to sell upgrades because the company would not be losing any profit, which is a pro for the company. A con to this suggestion is that there is no point for the customers to buy in bulk up front because they could do

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