...Chapter 11 Video Case Study 1. How does Hammerpress employ the concept of dynamic pricing? Hammerpress offers a set of pricing options. They are like other companies in the industry. They practice cost-based pricing, which is: design great product, add up the costs, and set a price. First, they offer an estimate price to the customer and offer a certain amount of revises. In the video though, revising a piece of work can be costly, and Hammerpress tells their consumers that it will cost them extra in order to make additional revises. The second way is when Hammerpress splits the operation costs with the company/consumer in return Hammerpress gets half the revenue per sale. If the company is not satisfied with the product, they can revise it as many times as they want. However, if additional revises become too costly then Hammerpress will tell the company that this will cost more money. 2. Discuss the three major pricing strategies in relation to Hammerpress. Which of these three do you think is the company’s core strategic strategy? A. Price based on hours of design, material and labor for production B. Split the material costs, labor, and profits in half. (50-50) C. Do it because they believe it will be profitable in the long-term, not short-term. Hammerpress is also responsible for marketing the product. I believe the company’s core strategic strategy is splitting everything 50-50 because this is both a short-term and long-term source of revenue, assuming...
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...Hammerpress Video Response Paper Established in 1994, Hammerpress decided stick with the roots of age-old press printing. This allowed the company to give up the high volume production that maximized profits in order to create better value to their customers needs, wants, and demands. By promising true craftsmanship, of having individual employees hand crafting the products this ensures customers that the product they are receive will be unique. The advantages of dynamic pricing for Hammerpress is the company has the final say in how much the final product will be, depending on how often the customer wants changes during the production of the product. Hammerpress calculates pricing by how much labor is put into the production of the product. Customizing products gives customers advantages by have a unique item, which Hammerpress promises customers. Customers’ value proportion is shown because the company promises high level products and consumers’ respond well when a product follows their needs. A disadvantage to dynamic pricing Hammerpress faces is some customers are unhappy of the prices continually changing. This is due to the demands the customer request of the company. Since Hammerpress is unable to have a final price of a product until all the calculations are done when the product is done, many customers turn away from investing their time into something that may cost too much. In order for Hammerpress to expand their market of consumers, they could implement...
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...Case 2 1. How does Hammerpress employ the concept of dynamic pricing? Hammerpress offers a set of pricing options. They are like other companies in the industry. They practice cost-based pricing, which is: design great product, add up the costs, and set a price. First, they offer an estimate price to the customer and offer a certain amount of revises. In the video though, revising a piece of work can be costly, and Hammerpress tells their consumers that it will cost them extra in order to make additional revises. The second way is when Hammerpress splits the operation costs with the company/consumer in return Hammerpress gets half the revenue per sale. If the company is not satisfied with the product, they can revise it as many times as they want. However, if additional revises become too costly then Hammerpress will tell the company that this will cost more money. 2. Discuss the three major pricing strategies in relation to Hammerpress. Which of these three do you think is the company’s core strategic strategy? A. Price based on hours of design, material and labor for production B. Split the material costs, labor, and profits in half. (50-50) C. Do it because they believe it will be profitable in the long-term, not short-term. Hammerpress is also responsible for marketing the product. I believe the company’s core strategic strategy is splitting everything 50-50 because this is both a short-term and long-term source of revenue, assuming the company continues to...
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