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ZENN Car - Admission/Application Essay Example

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What factors to be considered while setting the price for setting the price for city Zenn? Costs: If the rate does not include enough margins “to break-even, you’re heading for trouble. The best thing to do is sum up all your costs and divide by the number of hours you think you can bill a year. …
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Whatever you do, DON’T think you can bill every hour. You must account for sick days, holidays, hours working on the business, hours with no work and so on. Also make sure you factor in all the hidden costs of your business like insurance, invoices that never get paid for one reason or another, and everyone’s favourite taxes” (Nine Factors to Consider When Determining Your Price par. 1). Profit: Related to your input costs, you should always calculate how much money you put in and what are the final costs and always try to break even. This is business and there is need to make profit. Market Demand: Demand is always related to supply, if what work you do is in high demand, then you could always charge more for your services. Conversely if there’s lack or shortage of work around, you’ll need lower your costs and expect lesser margins. Industry Standards: It is not easy known the right charges for your work, always find the going rate for the work you do and try asking around. Try finding out what other businesses charge as well freelancers working on similar project. Business Strategy: Your strategy or your approach will determine the price you can charge, different companies selling the same product can always charge different and would never expect to pay the same for both Client: There is always variation of price for the client on the basis of the relationship with them, Some clients require more effort, some have higher risk, some provide more work and are repeat clients, some have projects you are interested in doing, some have work which could be problematic and want to stay away. You should vary your price to account all these factors. 2) What pricing approach would you recommend to the management of ZMC for the city ZENN? The pricing approach which I would suggest the ZMC company is the skimming the cream pricing, “a skimming pricing policy involves setting prices of products relatively high compared to those of similar products and then gradually lowering prices.  The skimming price is the highest price possible that buyers who most desire the product will pay” (Allen). This pricing is selected because it is the idea generation turned into a success by an eminent named Ian Clifford; the ZMC was the first company in Canada to come out with a zero engine noise with the least emission and the first electronic vehicle. The time considered at the time of the established there being little competitors, this is the useful method. CHAPTER 12: 1) Describe the current channel of distribution for the ZENN car? The Company’s primary focus is to sell vehicles to both individual consumers and bulk purchasers who need more than on as a retailer network. The focus has initially been mainly targeted on the United States marketplace and further consideration is being to add others areas in world market as well. During future course of action the Company may also look at changing there distribution channels that would be helpful to, and work in coordination with, the ZENN retailers. The Company has signed agreements to improve its sales and marketing by covering 17 retailer locations that collectively cover the year’s quota of 750 units. Some of these retailers currently have the exclusive right to a given territory but will lose that right of exclusivity if the purchase quotas are not achieved. The Company is also restructuring its training and marketing programs as part of its “retailer enablement” strategy. The shipment of ZENN’s was to retailers located in cold climate locales. 2) How does each member of the ZENN Car’s distribution channel add value? The each member in the car distribution are the asset to the ... Read More
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