piece business. Therefore, it should set its prices according the weight or quantity received with a reduction in price as the quantity increases. This will allow the organization to increase the volume of processed waste and at the same time provide clients with a discount. Currently, the organization has been experiencing a decreased profitability, so in addition to the hybrid price discrimination approach, I would advise the organization to increase its markup on the services or assume a staggered approach per customer. In such a way, it would be charging more expensive to the customers who can afford the services. For large companies, we should charge a high markup because they are financially well-off and can afford it while small business should be charged a small markup. The company should have a celling and the floor when it comes to markup and when tailoring the price index of each customer, around 20 and 40 percent depending on the customer. The current position that I hold does not grant me access to what the company charges since I am operational as opposed to financial. However, the current pricing system model would charge each customer differently according to what the organization
You've reached the end of your free preview.
Want to read all 5 pages?
- Summer '16
- Vincent Ntheketha