Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. general management
  3. paul bowlin owns and operates a tree removal, prun

Paul Bowlin owns and operates a tree removal, pruning, and spraying business in a metropolitan area...

90.2K

Verified Solution

Question

General Management

Paul Bowlin owns and operates a tree removal, pruning, andspraying business in a metropolitan area with a population ofapproximately 200,000. The business has grown to the point whereBowlin uses one and sometimes two crews, with four or fiveemployees on each crew. Pricing has always been an important toolin gaining business but Bowlin realizes that there are ways toentice customers other than quoting the lowest price. For example,he provides careful cleanup of branches and leaves, takes outstumps below ground level and waits until a customer is completelysatisfied before taking payment. At the same time he realizes hisbid for tree removal jobs must cover his costs. In this industry,Bowlin faces intense price competition from operators with moresophisticated wood processing equipment, such as chip grinders.Therefore, he is always open to suggestions about pricingstrategy.

What pricing strategies could Bowlin adopt to further his longterm success in this market?

Answer & Explanation Solved by verified expert
4.3 Ratings (692 Votes)
As mentioned in the brief Paul is already facing intense competition from players having a similar offering equipped with better machinery Hence Paul should make use of Competitive Pricing Strategy wherein in order to maintain the profitable sustenance of the business he should set a price that covers the production cost any overheads and also offers a sizeable profit With the competition at hand Paul has three options in front of him to set the right price for his service offering 1 Price the    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Increased gaseous CO2 concentrations are leading to decrease pH of ocean water which in turn causes...

Chemistry
Q

The data listed below are claimed for a powercycle operatingbetween reservoirs at 527_C and 127_C. For...

Mechanical Engineering
Q

Define the following terms: (a) simple random sampling, (b) systematic sampling, (c) systematic random sampling, (d)...

Statistics
Q

The slums of America were located where in the 1950s?A. farming areasB. suburbsC. rural areasD....

Biology
Q

15 Consider the spherical shells of radius a and b a b D C b...

Physics
Q

Suppose that you just bought a four-year $1 000 coupon bond with a coupon rate...

Accounting
Q

On January 2,2018, Sunland Corporation, a small company that follows ASPE, issued $2.6 million of...

Accounting
Q

Required: 1. What was last month's margin of safety? 2. What was last month's margin...

Accounting
Q

A company issues $25200000, 5.4%, 20-year bonds to yield 6% on January 1, 2020. Interest...

Accounting
Q

Enlightened Eats in Anchorage, Alaska, has six employees who are paid semimonthly. Calculate the net...

Accounting
Q

Direct Labor Variances The following data relate to labor cost for production of 20,000 cellular...

Accounting
Q

Wildhorse Corporation began operations in 2020 and reported pretax financial income of $228,000 for the...

Accounting