Case of the Pricing Predicament HBR Case Study and Commentary

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Management article

Reference no. 88205

Authors: Mary Karr (Harvard Business School); FG Buck Rogers (Harvard Business School); Bruce Moore (Harvard Business School); Richard T Lindgren (Harvard Business School); William Whitescarver (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: "Harvard Business Review", 1988

Revision date: 30-Jan-2013

Length: 12 pages

Topics: Sales; Pricing; Sales strategy; Machinery

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Abstract

Scott Palmer's most important account, Occidental Aerospace, is pushing for a discount, but Standard Machine Corp, Scott's company, has a long-standing policy of selling its products at list price--discounts are out of the question. Occidental also has plans for two new plants so Standard's bid may affect millions of dollars in future business. And two Asian machine-tool companies have set their sights on Occidental's home market. Has Standard's fixed-price policy outlived its usefulness? In 88205 and 88215, F.G. Rogers, formerly vice-president of marketing at IBM; Bruce Moore, president and CEO of HR Krueger Machine Tool, Inc; Richard T Lindgren, president and CEO of Cross & Trecker Corp; and William Whitescarver, president of the Bindery & Forms Press Division of Harris Graphics consider whether Standard's pricing policy can withstand the pressures of new competition and more demanding customers. This HBR Case Study includes both the case and the commentary. For teaching purposes, this reprint is also available in two other versions: case study only and commentary only.

Industry:

Machinery