You are in the competitive field of selling high-capacity photocopiers. One of your prospects is looking for copiers that will reliably run up to 5000 copies per day without being overloaded. After doing an analysis of the prospect's paper purchases over the last year, you extrapolate that 90 percent of her copiers ran at only 60 percent (3000 copies per day) capacity over the last year. Your dilemma is this: Should you propose your medium-duty copier, which was designed for 3500 copies per day, knowing that this will handle her needs most of the time based on the usage history? This will allow you-to come in with a price about 15 percent below your competitors and will allow you to get this lucrative deal. After all, it is highly unlikely that a problem will ever arise. Explain what do you do?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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You are in the competitive field of selling high-capacity photocopiers. One of your prospects is looking for copiers that will reliably run up to 5000 copies per day without being overloaded. After doing an analysis of the prospect's paper purchases over the last year, you extrapolate that 90 percent of her copiers ran at only 60 percent (3000 copies per day) capacity over the last year. Your dilemma is this: Should you propose your medium-duty copier, which was designed for 3500 copies per day, knowing that this will handle her needs most of the time based on the usage history? This will allow you-to come in with a price about 15 percent below your competitors and will allow you to get this lucrative deal. After all, it is highly unlikely that a problem will ever arise. Explain what do you do?

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