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Navigation System Price Analysis

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Navigation System Price Analysis
Strayer University
BUS315 Cost and Price Analysis
Professor Stephen Bartorillo
May 4, 2015

Price Analysis The primary costs being considered by Bickham Services Unlimited for the pricing strategy of the HSNS-P1 is the cost of manufacturing. In our case the cost of manufacturing is very high because the raw materials required, such as the unmanned, manned systems, aircrafts, space systems and other technological materials required, are too expensive. Also we need highly skilled and technical professionals for the manufacturing process to be directly involved in monitoring and manufacturing the system. The administrative cost are the most important expense because it aids the production of the drone navigation system as it covers the extra costs that come up. Consideration of our products cost will be essential for effective pricing. Inventory evaluation has to be made in order to determine the required inventory needed for manufacturing the HSNS-P1 unit. Unit costing will aid in the determination of appropriate cost of the final product (April 30, 2015, blog.cordiars.website). Transportation costs of the required raw materials will be included in the pricing. This is because we will need to import some highly sensitive materials for the manufacturing process. The price analysis was conducted based on: * Competitive proposals where price is not part of the proposal * Small purchase with documented published price lists from selected vendors and the best price was selected. * Small purchase with documented phone and fax quotations from various offers and the best price was selected. * Sealed bid with 2 or more responsible bidders and the lowest bid with best services were selected. Price Cost Analysis The cost of the HSNS-P1 is reasonable in a competitive marketplace against VectorCal. We have

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