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  • Escaping The Discount Trap: 1-Facts

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    Deepak Johny
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    Bosi e Faora manufactures medical devices in Brazil. They initially started with inexpensive reusable blood pressure cuffs but have expanded their product line. However, prices for their products vary significantly throughout the country. While their closest competitor supplies in low quantities, Bosi e Faora is looking to double their sales volume through a new "Solutions selling" strategy. This presents both challenges of maintaining profit margins and keeping other customers satisfied as prices are negotiated. The company plans to address this through reducing price gaps and rewarding sales representatives based on sales rather than profits.

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    DEBBT TRAP

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    Bosi e Faora manufactures medical devices in Brazil. They initially started with inexpensive reusable blood pressure cuffs but have expanded their product line. However, prices for their products vary significantly throughout the country. While their closest competitor supplies in low quantities, Bosi e Faora is looking to double their sales volume through a new "Solutions selling" strategy. This presents both challenges of maintaining profit margins and keeping other customers satisfied as prices are negotiated. The company plans to address this through reducing price gaps and rewarding sales representatives based on sales rather than profits.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    443 views1 page

    Escaping The Discount Trap: 1-Facts

    Uploaded by

    Deepak Johny
    Bosi e Faora manufactures medical devices in Brazil. They initially started with inexpensive reusable blood pressure cuffs but have expanded their product line. However, prices for their products vary significantly throughout the country. While their closest competitor supplies in low quantities, Bosi e Faora is looking to double their sales volume through a new "Solutions selling" strategy. This presents both challenges of maintaining profit margins and keeping other customers satisfied as prices are negotiated. The company plans to address this through reducing price gaps and rewarding sales representatives based on sales rather than profits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Escaping the Discount Trap

    1-Facts

    -> Cora and Augosto are


    working at Bosi e Faora.
    2-Products 3-Price 4- Competition 5-Distribution Network

    -> The company -> Closest competitor -> The products are
    -> Initially started with an -> The price of the
    manufactures medical inexpensive reusable blood manufactured by Bosi e
    products varied to is Produtos Medicos.
    devices. pressure cuffs. Faora.
    almost 40% throughout
    -> They supplied in low
    ->They meet Sergio, the -> Produced telemetry the country. -> The sales representatives
    purchasing director at the systems for remote blood quantities but now
    pressure monitoring. -> Since the prices are looking to double the then market the products
    Santa Casa de Misericordia
    not fixed, prices are volume. and fix the respective price
    hospital. -> Provided services like
    heavily fluctuating. for that specific product.
    training of people so that
    -> Main goal is to serve sales reps became more
    patients with low cost. -> They are given a base
    adept at innovations. 9-Future
    8-Challenges price above which they are
    ->Augosto is involved with a supposed to fix their own
    -> Bosi e Faora need not
    new strategy called Solutions -> The main challenge desired price.
    7-Alternatives forfeit their solutions
    selling. they are facing is the
    selling strategy.
    constant decline of -> The reps are awarded
    -> The new product idea was -> Instead of reducing
    profit margin. -> The prize gaps should be based on the number of
    put forth by the hospital price for that product,
    director. reduced to a minimum so sales and not on the profit
    they shall give another -> Reducing the price of
    that there are no margin.
    product that fits in the a product for a specific
    required price point. discrepancies among
    customer tends to
    6-SWOT Analaysis companies who purchase
    agitate the other
    -> They should try their products.
    -> S – Products and customers which
    coming up with good
    services offered. ultimately leads to the -> They could go ahead
    value products at the
    downfall of business. with their strategy by
    W – Profit margin gaps, expected price range as
    value is important in the doing adequate research
    Sales Rep discounts.
    longer run. to support their projected
    O – New strategies. end result.

    T – Competition, declining
    margin in profit.

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