Curled Metal Inc. Marketing Case Write-Up
Curled Metal Inc. Marketing Case Write-upBased on total savings, what is the economic value to the customer, per pad, to that customer?By using total hours per job we can figure out the cost per hour and total job and equipment cost. And then comparing the profits of the jobs by subtracting the cost from the revenue. It was clear that using CMI pads had a total cost savings of 22246 dollars. By adding the total cost saving plus the cost of conventional pads per job and divided by the number of CMI pads used. We get an EVC of 4207 per pad.We assume that the customer would be willing to pay more than what they are already paying. It would be pointless to set a per pad price, instead a pad set price because 3000 per set is what the customer is already paying. Not to lose the product attractiveness, it is recommended per set price of 3500, which means 583 per pad. We also assume curled metal set life of 10 times more than conventional pads, and a performance increase of 20% There are also safety benefits of using the pad, which will also serve as attractive features for customers to make the purchase.
Kendrick Conventional CMI Total hours per job 107 75 Diesel hammer 102 10880 7657 Overhead 300 32000 22520 Labor 122 13013 9158 Leads 24 2560 1802 Crane 156r 16640 11710