Ludy Mechanical Corporation Has Developed a New Industrial Grinder-Model YS-48-That

question 210

Multiple Choice

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. 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?

• A) $736,000
• B) $60,000
• C) $199,000
• D) $259,000

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Definitions:

Billing Issues

Problems or disputes arising from the process of invoicing for goods or services, including errors, unauthorized charges, or discrepancies.

Product Managers

Individuals responsible for overseeing the development, marketing, and sale of a product or product line.

Adaptive Selling

A sales approach that involves altering sales behaviors and techniques based on the sales situation and customer needs.

Consultative Selling

A sales approach where the seller acts as an advisor, understanding customer needs and offering solutions that meet those needs.