Clearwater Technologies Case Essay

Words: 1310
Pages: 6
Open Document
Clearwater Technologies
Amanda Moore

Problem

Clearwater Technologies’ problem is that end-user pricing for a capacity upgrade to the QTX server needed to be agreed upon in the upcoming meeting. Finance wants to increase revenue, sales wants to keep prices fair and management wants prices to stay within the margin model.
Mark Jefferies, Vice President of Marketing, is presiding over the meeting of Hillary Hanson, Brian James, and Rob Erickson. After listening to the suggestions of the three people, he realizes that they all have valid plans but all of them fail to meet the three goals he feels the new price should meet. 1) The price of the upgrades shouldn’t be lower than the current price of the 30 seat QTX. 2) …show more content…
With this method, the customer gets the additional capacity that they need and Clearwater’s margins stay constant.
Brian’s Proposal Brian disagreed with Rob’s proposal pointing out that in order to justify prices to the consumer, they would have to reveal their margins which was not ideal. Brian suggested that the customer should pay the difference between the original price of QTX and the upgrade price. So: New 30 seat unit
Original 10 seat unit
Price for 20 seat upgrade | $17,250$8,000$9,250 |

Brian’s method would be much easier for the customer to understand and would still drive revenues. Here, the price for a 20 seat upgrade would be $9,250; and a brand new 20 seat upgrade would be $14,000.
Hillary’s Proposal While Hillary understood what Rob and Brian were suggesting, she felt as though neither of them were most concerned with the company’s best interest. She explains that customers will stay loyal to Clearwater because they don’t want to go through the process of being trained on a new software. She feels as though they can charge as much as they want for the product because the customers don’t have much of an alternative. She suggests that Clearwater take advantage of this fact and charge anywhere from $15,000 to $20,000. Hillary believes that the company can and should be as aggressive as possible with the pricing.
Recommendations
In order to follow Mark’s suggestions, Rob, Brian and Hillary need
Show More

Related Documents: Clearwater Technologies Case Essay

Clearwater Internet Advantages

city of Clearwater, Florida attracts residents who are looking for lots of sunshine, warm weather, and a slower paced lifestyle. Now, just because a slower pace might be desirable, this certainly isn't the case when it comes to an internet connection. In fact, high speed internet in Clearwater, Florida is the most ideal option to choose. If you're looking for strong broadband internet in Clearwater, consider these providers before you make your final decision. Cable Internet in Clearwater, Florida…

Words 785 - Pages 4

Foreign Exchange Risk Case Study

Foreign-exchange risk is the risk of an investment's value changing due to changes in currency exchange rates. And investors will have to close out a long or short position in a foreign currency at a loss due to an adverse movement in exchange rates. In this case, the decline in the value of the U.S. dollar had reduced 2005 sales in Canadian dollar terms, post-hedging, by 7.5 cents for each U.S. dollar of sales, amounting to Cdn$8.4 million during the year. The decline in the value of pound sterling, euro and…

Words 611 - Pages 3

Essay about Clearwater Seafoods

Introduction: Clearwater Seafoods (CS) is a seafood exporting firm based in Canada. The firm is suffering value declining from international trade due to the appreciation of Canadian dollars. Hence, the company’s value declined for 35% that fails to distribute dividends under income trust since 2002. The company has to hold a conference for shareholders to establish an appropriate strategy to address the value declining problem and change its unit holder’s pessimistic shareholding sentiment. This…

Words 2234 - Pages 9

Dynamic pool segmentation Essay

12, DECEMBER 2009 Dynamic Pool Segmentation Model and Algorithm in the Car Rental Industry Yazao Yang School of Business Administration, South China University of Technology, Guangzhou 510640, China Email: scutyyz@gmail.com Wenzhou Jin and Xiaoni Hao Institute of ITS & Logistics, South China University of Technology, Guangzhou 510640, China Email: ctwzhjin@scut.edu.cn xnhao@scut.edu.cn Abstract— Pool segmentation is an essential step in the logistics management process for large-scale…

Words 4271 - Pages 18