Dolan, Craig Andrew Dickson, Anthony Fuhrer, Jordan Miller Case 17 "Eco Water, Inc." Manish (Manny) Krishna runs a distribution business named Eco Water, Inc. where he has been successfully marketing a product branded as PURITY II Naturalizer Water Unit, but now Manny wants to expand the business and increase profits but is unsure how to go about it. Solution 1: Manny can leave his business the way it is now. Pros: He is operating at a $7,260 profit per month not including replacement filter sales the way his revenues and expenses are at the present. Manny will not have to take any chances of losing money by raising his costs to generate a new market. Cons: Because Manny is the only distributor of the PURITY II in the area, he will miss out on a possibly very profitable market. The way things are now he has to markup his products 97.5%. If he were to increase the quantity sold he could lower the price. Solution 2: Manny could start selling the PURITY II to hardware stores and plumbing supply stores. Pros: Manny will be able to sell larger quantities of the PURITY II in a shorter period of time. Because the salespeople will no longer be installing the product he can lower their commission from $100 while they will still make money because of the larger quantity. Cons: The PURITY II distributor in Florida reported limited success while selling the units at a price of $275. The retailers expect a 33 percent markup so Manny will loose that additional which revenue will go to the retailers. Manny will cut his own business because consumers will be able to buy the PURITY II at other business establishments for a price of $365.75, which is $29.25 cheaper than what Eco Water, Inc. is selling them for. Solution 3: Manny could open his distribution range and cover other parts of Texas and northern Mexico. Pros: This would increase sales for Eco Water, Inc. and give Manny more revenue. Manny could possibly lower his price on the PURITY II to compete better with other products in the market. Cons: Manny would have to hire several more salesmen and he would incur additional costs to increase his distributions chains. Because of the Robinson-Patman Act, Manny's manufacturer may have to develop a separate distributor other than Eco Water, Inc. in the region. Solution Three seems to be the best idea because Manny will be able to grow his business and take advantage of new open markets. However, Manny should not try to go at this right away. He should progressively spread throughout the region instead of trying to go at the whole thing at once. Since he is the only distributor in the region, Manny will have no problem setting his price where he will be able to make a profit. Manny should also take into consideration other products that are similar to his and how much they are selling for. He will be able to make a large profit if he can sell his PURITY II as a much better product only a little bit more expensive.