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

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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?

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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

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