Wyler Logistic Solutions Corporation Has Developed a New Forklift-Model IM-40-That

question 107

Essay

Wyler Logistic Solutions Corporation has developed a new forklift-model IM-40-that has been designed to outperform a competitor's best-selling forklift. The competitor's product has a useful life of 40,000 hours of service, has operating costs that average $1.30 per hour, and sells for $139,000. In contrast, model IM-40 has a useful life of 120,000 hours of service and its operating cost is $0.80 per hour. Wyler has not yet established a selling price for model IM-40.
Required:
From a value-based pricing standpoint what is the differentiation value offered by model IM-40 relative to the competitor's offering for each 120,000 hours of service?

---

Definitions:

Genetic Contribution

The portion of variation in a trait among individuals in a population that is due to genetic differences.

Temperaments

Inherent parts of an individual's personality, including aspects like moodiness, energy level, and emotional reactivity.

Central Traits

Key characteristics of a personality that influence behavior and are consistent across different situations.

Changeable Aspects

Features or elements of a situation or entity that can be altered or modified.