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Pricing- Case Study- Ozone Generators

In:

Submitted By spleen85
Words 16342
Pages 66
Life cycle cost comparison:
Primozone GM192 vs. Ozonia
CFV15
A guide of how to create value for your customer.

Course:

ISM 13 Module 3 Pricing

Authors:

Blume, Anna 900711
Collu, Giulia 850511

Tutor &
Examiner:

Hand in date:

1

Caesar, Peter

15-01-15

Primozone

Abstract
This paper is aimed at providing a comparison of the total cost of owner ship (TCO) of two comparable products through the tool of a lifecycle cost analysis (LCCA). The compared products are ozone generators from Primozone and Ozonia.
Firstly the importance of pricing is presented followed by the discussion of the four most common pricing approaches and the best pricing method according to literature to achieve high margins is introduced. The described topics will be explained in detail in the theoretical framework followed by a comprehensive description of how value based pricing can be put into practice through economic value analysis and quantification and be therefore used as sales arguments based on the LCCA presented in Appendix A. The parameters for the LCCA were chosen with the help of the head of sales of Primozone, Jürgen Bischhaus.
The collected data are presented in Chapter 4 and implemented into the excel spreadsheet in Appendix A.
Several changing parameter scenarios were applied with the result that Primozone outperforms Ozonia in each of them except energy consumption, which are marginally higher, but not significantly. This also results in the ability for Primozone to charge a higher price compared based on its economic value. In
Appendix B, the guide of how to use the presented excel sheet is provided with a sales guide given in
Appendix c.

2

Primozone

Table of Contents
1. Introduction ...........................................................................................................................................

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