Assessment of Used Car Negotiation

Essay about Assessment
Assessment for Used Car Negotiation Simulation
Summary
My target for this negotiation was to get the car at $4,500, the low end of blue book value. $4,500
could be the net price, which means if seller can offer something else, such as maintenance service,
parts or accessories to offset some part of the cost, I can accept higher price. My BATNA is to deal
with other seller for similar used car. Eventually, I couldn't make any deal with seller during the
negotiation because he wanted to sell at $5,000 and his extra accessory offer is not worth $500. And
I found out that this car's timing belt has not been changed. It should have been replaced right after
100k mileages and it will cost about $600.
Description
I entered into the ... Show more content on Helpwriting.net ...
Considering the high mileage of the car, the timing belt should be replaced immediately and it cost
about $600. Seller was not willing to bear the cost. This made me have to think about my BATNA.
My BATNA is dealing with other similar car owners. That means I don't have to make commitment
to buy this car. So I think it was the time to end the negotiation in a polite way to keep the contact
because I may come back to talk to him if other offers are even worse. Finally we didn't make any
deal during this negotiation.
What worked for me?
Clearly sorting out the real needs in my mind and my budget limit is very helpful to figure out target
car model, price range, other considerations, alternative solutions, etc.
Making a right negotiation strategy based on Lewicki, Hiam, and Olander's analysis model. From
their model, I think I should deploy a competitive negotiation strategy in this case. This is a win–
lose strategy. My purpose is to win at all cost. I should spend time to prepare the negotiation as
much as possible. I have no much concern about future state of relationship with seller.
Researching on line helped to know the market price, the maintenance options, the accessory value
and other choice for similar cars. That made me have BATNA because I know I can get similar car
from other source and I do not have to commit to buy at end the

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Analysis Of The Sherman Anti Trust Act Of 1890
Price manipulation
As a consumer, we all get frustrated when we think a listed price is "too high" whether it is a
necessity, and we have to buy it, or we just really want it. Some of the largest complaints by
consumers today are directed towards the cost of goods. Marketing research has shown us that the
costs of some items are being intentionally raised based on aspects of the individual who is making
the purchase. The manipulation of prices can be broken down into three main issues: price fixing,
price gouging, and price discrimination. Are there any positive or beneficial reasons to do this? Yes
and no, the following paragraphs provide information about each practice individually.
Price fixing occurs when competitors of the same industry agree to raise, lower, or stabilize the
prices of their products. This is classified as a horizontal agreement because it involves competitors.
They do this in order to manipulate prices to gain an unfair advantage. The government has a law in
place for this issue called the Sherman Anti–Trust Act of 1890. This law requires each company to
set its prices and other terms on its own. Generally, the consumer expects the price of a product to
be determined by the current supply and demand. This is not the case with price fixing, as
competitors use this tactic to skew the market. Price fixing is illegal and difficult to catch, but there
are signs that could be helpful in determining if price fixing is in play. If competitors have

Swot Analysis Kelley Bluebook
According to Kelley Blue Book's website, my Mazda 1994 MPV is worth 2121 dollars if I sell it to a
private dealer. If I decide to trade in at a dealership, the car would be worth 1031–1462 dollars. Ii
think these numbers are quite fair and fairly accurate.
Kelley Blue Book started as a small family owned car dealership in 1918. Les Kelley, started with
only 3 cars on the lot to eventually become the largest dealership in the world. Originally, it only
sold used cars and provided mechanical services for them. iN 1926, Les published the first blue
Book of Motor Car Values in which listed the true values of thousands of cars out on the market. In
1993, the first Consumer Edition of the Blue Book was published and became an innovative stable
to people interested in used car values. Today, with the rise of electronic technology, Kelley Blue
Book can be found online at kbb.com. Pricing reports are free easily accessible. Today, the website
is a perfect place to compare models before buying. The top 5 2005 sedans models include the ...
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Fair purchase price ranges from 3,200–4,800 dollars. The suggested retail price is about 4, 600
dollars. The 2005 Honda Civic has roughly a higher city estimated drive with 27 miles per gallon
and 34 highway miles per gallon. The biggest difference with these cars is that the Honda Civic is
not automatic. Driving a stick shift takes some time to get use to since the driver has to change gears
manually when driving at different speeds rather than letting the car do "all the work" when driving
an automatic one. Both cars are about the same price, Front Wheel Drive, 4 doors and sit a
maximum of 5 people. With cars that have originated from Japan such as the Honda Civic, have a
better overall reputation than most American originated cars such as Ford brands. The Honda Civic
is considered safer according to crash test ratings ranging with 4–5

Marketing Mix For The Evergreen Aquatic Centre
Assessment Task 2: Project–Determine the marketing mix Marketing Mix The marketing mix for
the Evergreen Aquatic Centre will engage the four elements of marketing as follows: Product or
Facility Recipients of the facility Evergreen Forest is a small community encompassing just under
1010 square miles. The estimated current population is 11010. Evergreen Aquatic Centre offers
internationally recognised state of the art aquatic facilities to suit every person's demands. Going
from proficient practice to friendly fun play, the facility fulfils needs of everyone. Located in the
heart of Evergreen Forest, it is the region's only indoor aquatic and community recreation facility
that functions all year round. Benefits of the facility Year round aquatic leisure facilities and
programs, servicing Rainbow and surrounding districts Aquatic training & educational training
programs – lifesaving, first aid & water sports Safe, accessible, well presented, clean and hygienic
building, plant and equipment Community health, employment and recreational opportunities for all
age groups Adequately informed, motivated and trained staff Community engagement/Meeting
place Aquatic therapies for old people Most distinguishing features of the facility Only centre in the
whole region for providing all aquatic leisure facilities/programs under one roof Only centre in the
whole region with hydrotherapy pool and family friendly wave pool Unique fully enclosed 50 metre
slide (full of twists and

Classic Car Investment Essay
In 2015 a 1978 Ferrari sold for more than $35.7 million(Sullivan). Whether you are a car enthusiast
or you just use cars to get back and forth from work this is an amazing number. A car that sold for
more than 20x its original MSRP. How does this happen? Classic car investing is becoming the new
stock market for the wealthy. Buying, storing, then selling cars for a profit sounds like a simple
system, but can you really make money investing in classic cars? Auctions are now being televised
and we see cars selling well over their original price tag. Even with these prices some of the sellers
are winners and others, losers. There has to be a proper strategy for success or the auctions would be
pretty empty. I believe the strategy can be simplified ... Show more content on Helpwriting.net ...
The same way we obtain the vehicles is the only way to get rid of them. An auction is risky, but
there is a lot of money flowing and it is almost guaranteed to sell if accepted. Craig Jackson
mentioned that to participate in the auction an entry fee is needed as well as a 8–10% consignment
fee of the final sale price(Hamer). This will eat into profits with ease. So turn to selling it yourself.
Here you can establish your own retail, but you must find buyers and bicker over the final sale price.
This can be stressful and lengthy, but profitable. Uncle Sam is the only one who can take away
profits now, but he won't take 10% and

Key Facts And Issues Of Glenn Rozycki
Key Facts and Issues Glenn Rozycki is a 25 year old resident of Scarborough, Ontario who left
school at York University after one year because he felt that he would be happier running his own
car detailing business. Glenn wants to start up a new company, Custom Car Care, cleaning and
detailing cars. Glenn began this venture as a part time job but he wants to turn it into his full time
job. To ensure that his business will be successful, especially in comparison to other similar
businesses in his area, Glenn must make sure his business idea is realistic, sustainable, and
profitable. To ensure that Glenn can build a respectable reputation as a car detailing business, Glenn
must be able to grab a segment of the market in his area where a few competitors already exist.
Glenn can penetrate the market by employing different marketing and promotional strategies to
ensure that he'll see success and profits with his limited resources. Glenn's main objective for his
business strategy is to provide cleaning and maintenance to both the interior and exterior of vehicles
to preserve their condition by using quality name brand products and precise, hand–done work.
Glenn has already identified the different segments of car owners: owners of older cars that are in
poor condition, but served the purpose of transportation; owners of newer, mid–priced cars; and
owners of expensive cars costing more than $35,000. Glenn faced some competition in his area.
There are

How Much Is The Cost Of Zero Cost?
How Much is the Cost of Zero Cost?
To a neo–classical economist zero is just another price. To the average coustemer it brings to the
mind the word of free. We are always trying to get something for nothing so if something is free
then consumers impulsively take the option. Ariely shows how this impulse comes with hidden costs
that debunk the myth of rational consumers. Whether it's from eating too much free food or
accumulating worthless free pens, clickers etc, people are always trying to get a free lunch.
As usual (this is what is so great about the book) Ariely did an experiment to find the answer. He set
up a stall with offering two piles of chocolates, the first being Lindt truffles and the second being
Hershey kisses. He sold the Lindt for 15 cent and the Hershey for 1 cent. Due to their superior
quality 73% choose Lindt and 27% chose Hershey's. So far, so good. An economist would say that
Lindt was obviously a superior product and as the benefit from it outweighed its cost better than
Hershey did, it sold better. So Ariely knocked one cent off the price of each chocolate, so that the
Lindt truffle cost 14 cent and the Hershey kiss was free . If Lindt was a superior product then it
should hold its place as its relative price hadn't changed, it still cost 14 cent more than Hershey. Sure
the proportions had changed, but one cent is the same amount in your pocket regardless of
proportions. You don't buy goods in proportions; you buy them in absolute amounts. Any

Operations Management Homework
1. What is the best way to increase value the most, given the following information for one
customer? Base Case: Perceived benefits $50 and Price $10.00
Improvement Option A: Perceived benefits $65 and Price $13.00
Improvement Option B: Perceived benefits $65 and Price $12.50
Improvement Option C: Perceived benefits $60 and Price $12.50
We derive the following (using the formula, value = perceived benefits / price (cost) to the
customer): * Base Case: value = (50/10) = 5 * Option A: value = (65/13) = 5 * Option B: value =
(65/12.50) = 5.20 * Option C: value = (60/12.50) = 4.80
The option B is the best way to increase value the most (but the cost to the customer is higher, and
the perceived benefit as well). ... Show more content on Helpwriting.net ...
Use productivity arguments to recommend whether or not to change the current system.
Using the formula:
= 50 / 1 = 50 = 90 / 3 = 30 It is better not to change the system, since a single worker can handle 50
cars per hour (taking orders, assembling them and acting as a cashier), on the other hand, 3 workers
(one taking orders, the second assembling them, and the third acting as cashier) would handle 30
cars each. 10. What is the average value of a loyal customer (VLC) in a target market segment if the
average purchase price is $75 per visit, the frequency of repurchase is six times per year, the
contribution margin is 10 percent, and the average customer defection rate is 25 percent?
Using the formula: VLC = (P) (RF) (CM) (BLC) VLC = (75) (6) (10%) (1/0.25) VLC = $180.00
The average value of a loyal customer (VLC) is $180.00.
12. What is the average defection rate for grocery store shoppers in a local area of a large city if
customers spend $60 per visit, customers shop 52 weeks per year, the grocery store has a 12 percent
gross mar– gin, and the value of a loyal customer is estimated at $2,750 per year? Using the
formula: VLC = (P) (RF) (CM) (BLC) 2,750 = (60) (52) (12%) (1/DF) 2,750 = 374.4 (1/DF)
7.345085 = (1/DF) DF = 1/7.345085 DF = 14% The average defection rate for grocery store
shoppers is

The Pros And Cons Of Underpriced On Vehicles
Based on Kelley Blue Book prices, the price for the vehicle listed on its website is $3,596 higher
than the same vehicle listed on cars.com. The prices listed are for vehicle in excellent or very good
condition. However, I do not know exactly what the condition of the vehicle listed on cars.com;
therefore, I cannot say whether the vehicle is listed underpriced on cars.com until I actually inspect
and test drive the vehicle. Since I am getting an auto loan from a bank to purchase my vehicle, the
lien holder (most likely the bank) required to have comprehensive and collision on the vehicle.
Therefore, I need to get full coverage on my car. I want to have the same coverage as I have right
now with my current vehicle. I would have to stay

Compare and Contrast Essay
April 26, 2010
Wal–Mart VS. Target When it came to shopping, I used to go to two stores, Wal–Mart and Target.
Now I just go to Wal–Mart. Between the two of these stores, Wal–Mart is definitely the best, not to
mention the most beneficial. They have everything you need and more. Who wouldn't love a store
that has the best customer service, quality and much more? The prices at Wal–Mart are always low.
They even price match other stores.
This means if you bring in a sales paper with for instance, a microwave that's $45 and Wal–Mart has
the same one for $65, they will sell it to you for $45. If they have something marked lower than
what it really is they sell it to you for that price, even if it's a big difference. You definitely get ...
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Target may have a bigger selection on some products, but their store is such a big hassle. To have a
well managed store you need good customer service, a good atmosphere, and low prices. That's
something Target has none of and Wal–Mart has plenty of.
Sara Horter
Dianne Parker
ENG 1101 Compare and Contrast Essay
April 26, 2010
Wal–Mart VS. Target When it came to shopping, I used to go to two stores, Wal–Mart and Target.
Now I just go to Wal–Mart. Between the two of these stores, Wal–Mart is definitely the best, not to
mention the most beneficial. They have everything you need and more. Who wouldn't love a store
that has the best customer service, quality and much more? Good beginning The prices at Wal–Mart
are always low. They even price match other stores. ThisWhich means if you bring in a sales paper
with, for instance, a microwave that's $45 and Wal–Mart has the same one for $65, they will sell it
to you for $45. If they have something marked lower than what it really is they sell it to you for that
price, even if it's a big difference. You definitely get more for your money at Wal–Mart. The
atmosphere at Wal–Mart is over all pretty amazing. They usually have their products in the right
spots and their sizes are organized wellx too. Every time I am in Wal–Mart I see them you cannot
use a pronoun without an antecedent – name who "them" are putting up stock as soon as it gets off
the truck. They even have a clearance isle that's completely organized.

Explain the mechanism referred to in the above statement...
"Trade between advanced countries that are abundant in capital and skill and NIEs (Newly
Industrialising Economies) with their abundant supply of unskilled labour was raising the wages of
highly skilled workers and lowering the wages of less–skilled workers in the skill– and capital–
abundant countries " (Krugman, Obstfeld and Melitz). Explain the mechanism referred to in the
above statement using the Heckscher–Ohlin model.
The Heckscher–Ohlin model is extremely useful when illustrating how endowments of a particular
resource can influence trade between economies. The model shows us how comparative advantage
is explained somewhat by the relative abundance of certain resources, such as land, labour or
capital.
The Heckscher–Ohlin (HO) ... Show more content on Helpwriting.net ...
Assuming the demand schedule is identical in both countries, then without trade, Foreign's own
market equilibrium is at '1' and Home's equilibrium for cars is at '2'. When the two countries trade,
the relative 'world' price converges to a point somewhere in between these two points at '3'.
We can see from the above illustration that trade leads to a convergence of world prices at point 3.
The Foreign economy will therefore export the good that has seen an increase in its relative price.
Now that we have seen how prices change under the assumptions of the HO model, I will now
explain how these changes have an impact on the distribution of income in countries open to trade.
A rise in the prices of cars increases the purchasing power of skilled labour (the abundant factor) in
the foreign country in terms of both goods. At the same time it decreases the purchasing power of
unskilled labour (the scarce factor) in terms of both goods. So by opening up to trade, the owners of
the abundant factor become better off, whilst owners of the scarce factor become worse off.
Theoretically, opening to trade should increase the consumption possibilities for the whole economy,
allowing everyone to gain a higher utility. So why do some people become worse off, post–trade
under the HO model? The underlying issue is that trade only changes relative prices of factors,
which has a direct effect on the relative earnings of those

Value Prposition
r
Value proposition
From Wikipedia, the free encyclopedia
Creating a value proposition is part of business strategy. Kaplan and Norton[1] say "Strategy is
based on a differentiated customer value proposition. Satisfying customers is the source of
sustainable value creation."
Developing a value proposition is based on a review and analysis of the benefits, costs and value
that an organization can deliver to itscustomers, prospective customers, and other constituent groups
within and outside the organization. It is also a positioning of value, whereValue = Benefits – Cost
(cost includes risk)[2].
|Contents |
| [hide] |
|1 Models ... Show more content on Helpwriting.net ...
Strong value propositions are also expressed from the customer's perspective and talk about the
experiences and benefits that they will have when using the product.
[edit]Competitive Advantage
A product with a successful consumer value proposition is directly linked to a products actual and
sustained performance versus competition. The two main attributes that allow consumers to
differentiate among products are price and quality. Finding the correct balance between these two
attributes usually leads to a successful product. If a company is able to produce the same quality
product as its direct competition but sell it for less, this provides a price value to the consumer.
Similarly, if a company is able to produce a superior quality product for the same or a slightly higher
but acceptable price, the value to the consumer is added through the quality of the product. A
product must offer value through price and/or quality in order to be successful.
[edit]Target Audiences
▪ End user – The initial and ongoing satisfaction of the end user is the goal of every business.
Customer satisfaction is achieved when superior customer value is delivered. Establishing a lasting
business relationship will lead to future sales. Price and

Reacted Irrational By Dan Ariely
The book "Predictably Irrational" was written by Dan Ariely in 2008, and it is considered to be a
best–seller in the United States. Dan Ariely is a professor of Duke University and works in the new
field of Behavioral Economics. The book is mostly focused on helping us better understand our
decision–making processes, and also become an unavoidable source of information when creating
public policy. Ariely focused in why people make irrational decisions, He conducted 13 experiments
and he explains every single one of them. He also teaches us that we have no idea of things and also
keeping too many doors open has a higher than what those opportunities really worth. In addition
Dan Ariely want to teach us the mysterious way of the human mind, of why we do what we do in
certain situations and why we act totally irrationally. The author gives different examples on
experiment made on top universities.i will give brief summary of most of the chapters, in order to
better understand the main idea that the author tried to bring by writing the book.
The book starts with an introductory chapter, were Ariely described how it came to their research
area after a very painful experience: for years he endure medical treatment for third degree burns
sustained in 70% of the body in an accident. His first research was on the ways in which people face
the pain, and how, specifically, nurses who generously assisted in his treatment, appeared to be
victims of certain bias or prejudice that affected

North Country Auto Case
Chapter 5 Profit Centers
201
Country Auto, Inc.
{Liddy, part owner of North Country Auto, Inc., was feeling pretty the new control systems recently
put in place for his five departtiers (new and used car sales, service, body, and parts departments) .
.escrioes eacn aepartment. Mr. Liddy strongly believed in the concept " geach department
individually as a profit center. But he also recoghl3.llengeof getting his managers to "buy in" to the
system by work '::.:ffotthe good of the dealership.
Untty Auto, Inc., was a franchised dealer and factory–authorized llter for Ford, Saab, and
Volkswagen. Multiple franchises were beore common in the 1980s. But the value of multiple
franchises. did f guidebook, published monthly, was, at best, a ... Show more content on
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Given underutilized capacity in service, I do not understand why 1 am charged full price. It doesn 't
make sense for the service department to mark up on projects undertaken for new and used car
departments within our own dealership. 1 can 't see how we can make profits when one part of our
company sells to another." Robbins added, "When I am unsure of the actual retail value, 1 tend to
wholesale rather than take a risk of a negative margin at retail. However, when I do this, we may be
losing as an organization as a whole." "I agree with Amy on this," stated Walker, "and I have the
same problem with dealer–installed options. When 1 am charged full price for options, I have no
incentive to try to sell these items." . "Hold on," said the service department manager. "1 make my
profit by selling service, and these are the prices I would charge for outside work. To sell service for
a lower price inside defeats the purpose of this profit center idea. But 1 do have a problem with
getting full price for parts. The demand for parts is derived almost completely from service, and we
are dependent on parts for quick delivery for

The Market For A Car
You're in the market for a car, but just not any vehicle. Specifically, you're hemmed in by budget
restrictions and can spend no more than $5,000, perhaps much less. The reality of the used car
market is that even clunkers can cost a few thousand dollars and that's exactly the type of vehicle
you want to avoid. However, with some careful research on your part, much patience, as well as
satisfactory negotiation skills, you can find a used car for under $5,000. Here's how to do it.
Manage Your Expectations
You might have a certain make and model in mind when choosing a reliable, low–cost used car, but
your expectations should align with market realities. And those realities will be confirmed when you
shop for a car, study the ads, and research the car valuation sites.
First, you should know that car values fluctuate. Indeed, in times when gas prices are high, values of
economical cars rise and those for large sedans, SUVs and pickup trucks drop. Conversely, the
opposite happens when fuel prices are low.
Second, the more particular you are about a brand, especially premium or luxury brands, the more
costly a vehicle will be. You may have your eyes set on a BMW, but even a 3 Series approaching 20
years old will cost you. The reliability of an older vehicle becomes an issue; acquiring parts for
some foreign models can be pricey.
Technology is a State of Mind
Very few cars that are less than 10 years old can be had for $5,000 or less. Some compact models or
high–mileage

Porter's Five Forces In Automobile Industry
3.2 External Environment Analysis –Industry Analysis (Porter's Five Forces Analysis)
Porter's Five Forces Framework Model analyses the competitive forces within the environment in
which a company operates, to assess the potential for profitability in an industry. Porter consists of
threat of new entrants, threat of substitute, buyer power, supplier power, and rivalry among existing
competitors. The change in any forces normally requires firms to observe the market and make the
decision in overall change of industry information. Firms are able to apply their core competencies,
business model or network to achieve a profit above the industry average.
Threat of New Entrants
Profitable industries that yield high returns will attract new firms. New competitors may force
existing firms to be more efficient and to learn how to compete on new dimensions. Threat of new
entrants is high when it is easy for new competitors to enter a market ad low when there are
significant entry barriers to entering a market. These entry barriers make it difficult for new firms to
enter an industry and often place them at a competitive disadvantage even when they are able to
enter. The domestic cars that have produce in Malaysia are Proton and Produa. This can be seemed
that in automobile industry, there have ... Show more content on Helpwriting.net ...
Firms can take measures to reduce buyer power such as given discount by helps the company to find
out which is firm's loyal customers. Buyers' power is high if buyers have many alternatives and it is
low if they have few choices given. The buyer power increases when the Produa products are
differentiated or standardized. Buyers pose a credit threat to integrate backward into the sellers'
industry. For example, buyers might influence by price which buyers wants the cheap and adorable
car. They also have the option to choosing types of cars, colour and others additional

Speech On Money Saver
An ultimate money saver is a vacation in your own back yard. Set a few guidelines for what your
family may and may not, during the vacation, these could include the following: Turn off the
phones, the computers and the TV and ban cooking, cleaning, laundry, work and stress.
The whole family should set these priorities together and spend time planning for fun instead, e.g.
find plenty of ideas in the following chapters "Entertainment" on page 81 and "Leisure Activities"
on page 82. Transportation & Communication
Transportation
Transportation may be a considerable expense depending on where you live, need to travel and your
options, since most of us have a car, let us study saving alternatives in this area.
Lowering gas consumption may start ... Show more content on Helpwriting.net ...
Communication
Previously, the cost of phone, internet, etc. could be quite expensive, nowadays you just need to
keep an eye on the bill and occasionally check for new and improved deals. If you communicate
with other countries, using email, Skype, Facebook, etc. will be close to free of cost, perfect if you
are studying or working abroad. Also, consider a local SIM card.
One mistake is buying more internet capacity as well as telephone services than needed, e.g. you
need to compare actual consumption with the subscription, to avoid paying too much.
The same goes for phones and computers, i.e. you can easily buy a phone or a PC that is much faster
and has much more storage capacity than you need. Whenever renewing these items, check that you
only buy what is needed, e.g. PCs and smart phones allow you to check which resources they utilize.
Some feel the need for the newest and smartest gadget, phone, computer, etc. this is an expensive
habit, so, wear out your gadgets before buying new. Remember that yesterday's hottest phone or
computer can be bought for a fraction of the original cost today, even as new, however, the savings
will be considerably higher if buying

The Characteristics Of Oligopolies
An oligopoly is a market structure characterized by; few firms either standardized or differentiated
products, and difficult entry. A key characteristic of oligopolies is that each firm can affect the
market, making each firm's choices dependent on the choices of the other firms. These are known as
interdependent. Oligopolies are made up of a small number of mutually interdependent firms. Each
firm must take into account the expected reaction of other firms.
The importance of interdependence is that it leads to strategic behaviour. Strategic behavior is the
behavior that occurs when what is best for one company depends upon what the other company
does, and vice verse. Oligopolistic behavior includes both ruthless competition and cooperation.
Oligopolies can be collusive or non–collusive. Firms may engage in strategic decision making
where each firm takes explicit account of a rival's expected response to a decision it is making
The cartel model is when a combination of firms' acts as if it were a single firm and a monopoly
price is set.
The contestable market model is a model of oligopolies where barriers to entry and exit, not market
structure, determine price and output ... Show more content on Helpwriting.net ...
Its apart of the Cost curve diagram which will be illustrated below following the scenarios of
Montague Motors and Japan Direct.
Key Notes to remember about the Kinked Demand Curve are:
Firms are profit maximisers
If one firm increases price, other firms won't follow suit. Therefore, for a price increase demand is
price elastic.
If one firm cuts price, other firms will follow suit because they don't want to lose market share.
Therefore, for a price cut, demand is price inelastic.
This is how you get the 'kinked' demand curve.
Furthermore, the kinked demand curve has limitations. It does not explain how the price was arrived
at in the first place. The firms may also engage in price

What´s Odd-End Pricing?
Odd– end pricing is another pricing strategy that is used by many retailers. Odd–end pricing is the
"ubiquitous practice of expressing a price so that it falls just below a round number" (Harris and
Bray). In other words it is the technique of pricing items with an ending of nine versus using a solid,
round number. Consumers are "alleged susceptibility to "price illusion" (Huston and Kamdar, 1996).
This price illusion is what many experts consider the illusion that business give to the consumer that
because a price ends with .99 on the price tag it is pricing is consider to be less. The history of odd–
ending pricing became present with the invention of the cash register, many business owners would
use this as a way to prevent employees ... Show more content on Helpwriting.net ...
Furthermore, it has been proven that "people focus more on the left–most digit" (Rutgers University,
2011 ).The left most digit theory reveals that consumers will pay more attention to the first few
digits of a price and not pay attention to the rest of the price. This theory suggests that pricing a
number at $24.99 is better than $25 because it will manipulate the consumer into that believing that
he or she is paying less money. Research reveals that consumers round odd prices down. (Kinard,
Capella and Bonner 2013) Strategies such as odd–end pricing are believed to benefit more retailers
than consumers due to the increased sales of using odd–end prices. In some cases, odd–end pricing
is not effective. According to one consumer, odd ending pricing equated to bad or low quality.
(Rutgers University 2011) Also, consumers felt that when purchasing items of high price or luxury
such as high price cars, jewelry or houses items should be priced with a solid, straight forward
number. (Rutgers University 2011) Ending a price with nine could possibly steer consumers away
from purchasing an item because like stated earlier, people tend to pay attention to the first digits in
a price, therefore when purchasing an item with a high price the consumer will want to know the
exact price and not have to add in the nunbers after the decimal. Also, studies have been conducted
to show that consumers are now rounding prices to even numbers for

Broke Car
Four Ways To Get The Car Of Your Dreams Without Going Broke
If your heart skips a beat every time you see a certain make or model of car and the one you're
driving is on its last leg, it's time to go shopping! However, affording the car of your dreams can be
next to impossible on a tight budget. Here are five ways to put yourself into the vehicle you really
want, even though your finances force you to be frugal.
1. Find New Ways To Save More Money
The higher the down payment you apply to the price of a vehicle, the lower your monthly payments
will be, thus, if you can figure out ways to save more money and drop more cash at the point of
purchase, you can look for the car of your dreams, rather than whatever is on sale.
Evaluate your spending ... Show more content on Helpwriting.net ...
Why not ask a local dealer to look on your behalf? If they know you're serious, they will keep an
eye out for you, watching for your preferred model and specifications. While there will be fees
added to the auction price to cover the dealer's expenses, you're still going to end up with a good
deal.
4. Buy Basic And Pimp The Vehicle Later
Paying cash or financing your used vehicle will be cheaper if there are fewer bells and whistles
installed and might land you behind the wheel faster than if you have to look around for a well–
equipped model. You could budget things like a stereo, window tint and mag wheels over the course
of the next year, rather than factoring those expenses into your monthly payment or up–front costs
when paying cash. Customizing the car later could be a lot of fun and doing it on your terms means
considerable savings.
Finding the perfect car for yourself on terms you can live with isn't easy, but the more educated and
creative you are, the more doors you will open for yourself. Talk to a dealer, examine all your
options and make the necessary moves that will put you behind the wheel of something you really
love – and can

Choosing A Car Analysis
Choosing the right car can be difficult when one is trying to choose the right make or model. When
it comes to buying a car someone should focus on buying a new car instead of an old one because
used cars can be troublesome. Price matters because when you are in college, it's hard to save
money, and you can't work a full–time job while having to do classes and homework. The safety
feature is important not only to keep me safe and alive, but it's also keeping me from wrecking my
car, which keeps my Assurance from going up. I have little sibling, it keeps them safe with new and
updated safety features. Buying a car cost money, while, in college, I need a car that will not be
bothersome. The performance is key because the car might be my transportation to a university. I am
currently looking for a car and my key focus and interest is on the Toyota Yaris and ... Show more
content on Helpwriting.net ...
This car includes Nissan Connect with Navigation and Mobile Apps with 5.8" color touch–screen
monitor and voice recognition, Bluetooth Hands–free Phone System, AM/FM/CD audio system with
auxiliary audio input and four speakers, and the advantage of that is so people can listen to music
while driving especially if you going on a road trip. It isn't an overpriced car if you have a stable job
that pays well. The estimate for this car is $14,180 to $17,940 manufactures retail price which is
affordable, it would be a few dollars less than a Toyota Yaris. The car gets excellent gas mileage.
Because it gets 31 miles per gallon and 40 per gallon highway. While driving in heavy traffic, on the
highway in climate weather, the safety features are very important. The interior includes 4–way
manual driver's seat, 6–way manual driver's seat, Driver's seat armrest, Heated front seats and 60/40
Split fold–down rear seats; With cloth seat trim accents and stitching carpeted floor mats, cloth door
trim accent and leather–wrapped steering

Low Fuel Cost
Prior to the decline of fuel prices, I had always thought there was not enough being done here in
American to contribute to the production of oil. Until now, fuel prices were astronomical. Americans
were having to plan out their route and car pool due to excessive prices. Unnecessary trips was not
an option.
In 2012, gas reached more than $3.50 per gallon. Today, gas averages have remained around $2.50.
What I found most compelling about the pros is with every penny decline, a billion dollars is
returned to customers. It is completely astonishing that one cent can have such an enormous impact.
Because of the production of oil in America, low fuel cost have allowed Americans to save money
and take much–needed vacations. Whether traveling by vehicle or plane, we are all much happier
when we get behind the wheels of our vehicles or on a plan due to low fuel costs. On average,
households are saving over $700 per year and even more if there are multiple vehicles. Americans
were long overdue ... Show more content on Helpwriting.net ...
States such as Alaska and North Dakota are negatively affected by the cost of low fuel. Being huge
oil producing states, a prolonged decrease in oil prices can have a heavy duty affect resulting in
more layoffs, which brings me to the point that not every individual benefit from low fuel prices.
When the cost of fuel is low, as it has been the last couple of years, more individuals who work in
the oil and gas industry will continue to lose their jobs. With more than 100, 000 out of work, low
fuel prices are not doing our unemployment rate any favors. Even though fracking has contributed to
the increase in production of oil in the United States, many believe it has greatly contributed to the
significant increase in earthquakes. Despite the fact that has not been proven, if one looks at the
logistics of fracking, it is quite obvious there must be a relationship between the

Used Car Terminology
Whether you're looking to buy or sell a used car, you're going to hear many different terms. You'll
need to learn what goes into determining the price of a used car to understand how to negotiate the
best price for yourself too. This guide will help you when you're buying or selling a used car.
Terminology
Dealer Retail Price
The used car dealer will want to sell the vehicle at the highest–possible price. It's the price listed on
the buying guide or on the windshield in bright numbers. The retail price isn't the last price that a
dealer will take. It's often the starting place for negotiations.
It's also a higher price than a person would receive on a trade–in to the dealership. The dealer has to
be able to make a profit on the vehicle ... Show more content on Helpwriting.net ...
It's the price at the beginning of negotations. A private seller will often list their asking price when
selling a used car.
You can certainly ask a private seller if they are willing to negotiate. Some private sellers will tell
you in their advertisements if they're willing to negotiate. It'll have the price and the words "or best
offer" after them. This means they are willing to discuss the final selling price.
Blue Book Value
When someone mentions the blue book value of the car, they are referring to the Kelley Blue Book
value. It's a list of cars based on model, year and condition as well as trade–in prices.
While some people believe it's a price set in stone, it's only a pricing guide. Consumer reports, the
National Automobile Dealers Association and VMR has pricing guides too. When you check several
of these sources, you can pin down a more accurate price for a vehicle.
Trade–In Price
Dealers will often take an old used vehicle when you're purchasing a vehicle from them. The trade–
in price is negotiable and is based on what the dealer would like to pay, not the price he'd get for it
when selling.
How Cars Are Priced

Model and

Impact of Fuel Price Deregulation in India
Impact of Fuel Price Deregulation in India
Introduction
Empowered group of Ministers on Friday, 25th June 2010, took a decision to decontrol the petrol
prices increasing it by 3.50 per litre & that of kerosene by Rs 3 a litre. While petrol is mainly used
by the middle class for cars, kerosene is used by the poor for power.
Diesel prices rose by Rs 2 per litre and might be freed up in the future. Cooking gas prices were
raised by Rs 35 a cylinder.
Govt. has indeed taken a bold step by deciding to decontrol prices of Petrol & increase the prices of
Petrol, diesel and Kerosene prices. However, this move of UPA govt. is likely to have some
implications. In these tough times, when, rising inflation is a continuous cause of concern, ... Show
more content on Helpwriting.net ...
This too has contributed to the fiscal deficit.
Fiscal Deficit
How the fiscal deficit shall decrease in the long run can be understood with the help of following
equation;
We know that
Y = C + I + G + (X–M)
Here,
Y: GDP or National Income
C: Private Consumption Expenditure
I: Private Investment Expenditure
G: Govt Expenditure on Consumption and capital formation
X: Export
M: Import
Also
G = Taxes – Subsidies – Govt. Expenditures
For India G is negative at the moment to the extent of 4.12 trillioin rupees. In other words, the
revenues generated by the govt. through taxes are less than the expenditures it has incurred.

Now, since subsidies have been reduced therefore Govt saving shall increase which may then be put
into some other use. However, withdrawal of subsidy would also mean more private consumption
and less private savings but that is not going to have any impact on Fiscal deficit which is nothing
but Govt. Income (Taxes) minus Govt. Expenditure.
Impact on retail oil market
The threat of diminishing market share looms large before the state owned firms such as Indian Oil
Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd, which control more than 95
per cent of about 40,000 refined fuel pumps operating in India although they will gain from market
rates of gasoline and diesel. State–run retailers were anticipating a revenue loss of $24.4 billion this
year, based on an

Weaknesses Of Ford Company
With a swot analysis we can determin the company strength , weaknesses , oppourtunties and threats
.
lets start with the strength of the ford company . the strength comes within the inside of the
company that makes the company a better place . some of the strength the ford company has is that
they have good supplies for making their cars , they are considered as one of big companies and that
requires higher workers who are trained well to do the job in their field . The company has a
famouse brand name that has higher history which helps the company to continue and be great at
what they sell . The other strength is that customer are satisfied with they buy from ford company
once they bought the car . Qualities is always very important to customers when they are buying
products . ... Show more content on Helpwriting.net ...
The weanknesses for this company are that when they use very good supply in their cars they start to
decide on rising the price and that could have big negative effect on the company because the
customers start feeling pressured by the prices and start not wanting the cars anymore because they
feel that the prices are very high . The other fact is that the company needs to also compit with the
other largest company like toyota and it gets harder for them because as you know now a days
companies try their harder to use non expensive supplies so they can have more customers and
better pricces. Other weaknesses could be that Ford does not have a sense on how to use their
supplies and how to gather their supplies like they dont know how to gather their supplies with
lower prices as other company continue to do so and become a head of the ford company like the
toyota company

The Importance Of Oil Prices In America
Oil prices affect most American's daily lives. Whether it is used to fuel your car, a plane, to heat
your home, or even if it is just used inside products, like plastic that we use daily, oil plays a role in
all of our lives. Last year, in 2015, an extreme decline in gas prices swept the United States. For
example, oil prices have decreased to less than $30 a barrel which is the lowest it has ever been in
12 years. There are many factors that can contribute to this sudden decline in gas prices, but their are
three that are the most relevant. These include, the recent advancements in other fuel sources, the
changes in the leading oil suppliers of the world, and the simple economic concept of supply and
demand. These three ideas are all important in contributing to the fall of gas prices. ... Show more
content on Helpwriting.net ...
Alternative fuel sources are defined as sources used to reduce our dependence on imported oil, and
to rely more on renewable resources. Solar panels, an example of an alternative fuel source, can be
put on houses or buildings, designed to absorb light rays and convert it into electricity or heat (What
Are Solar Panels). This eliminates the need for oil to heat your home. Another alternative fuel
source are hybrid cars. Hybrid cars are a mix of gas and electricty but still cuts down the need for oil
substantially. They work by using a gas engine and electric motor to propel itself. Both solar panels
and hybrid cars, either eliminate the need for oil or limit it which is why they are a top cause for the
drop in oil

Pricing and Financial Management of Contracts
Hugo Corporation – Maximize Price Competition
1. You are concerned about the clarity of the purchase description in light of the lack of competition
on the current purchase. As a buyer, what can you do?
a. You can elect to rewrite the purchase description in more detail and have it reviewed in house for
feedback.
b. Or if circumstances permit, invite interested offerors who reply to the initial solicitation, to an oral
presentation of the offer and clarify any issues before requesting official bids or proposals. This can
be a video conference or a personal meeting.
2. You are also concerned that the Government did not obtain the greatest possible discount on sales
over 1,000 total units. As a buyer, what can you do?
It is too late to ... Show more content on Helpwriting.net ...
What factors do you think affect this difference?
a. Washington Central knew they did not meet the award criteria with 2 instructors having no
masters degree and was hoping the low bid would compensate. Also engineers with bachelors
command less compensation that engineers with masters.
b. All their trainers were permanent employees working in DC and its possible that if they did not
get this contract they may become idle resources on the payroll.
3. The proposal of Washington Independents is $39,286 less than the Government estimate. What
factors do you think affect this difference?
The government may have estimated significant travel and lodging expenses for the instructors. But
the instructors at Washington Independents were all within 15 miles of each training location. This
significantly reduced travel expense e.g rental cars, airfares, and possibly eliminated additional
lodging expenses e.g hotels.
4. Los Angeles Quality has the highest proposed price. What factors do you think affect this
difference?
The 11 instructors that need to travel from LA to DC is a significant factor affecting the price. The
main price difference was the LA estimate to provide training at the Washington DC location. Los
Angeles proposed prices for all training locations were on target or very close within $2,000.00 of
the government estimates; except for Washington, DC location where there was a

jygjk kj Essay
HW Unit 1: Introduction (60 points)
1. "Give Fees an Inch and They'll Take a Mile" from the Wall Street Journal, 3/14/2014 –
corresponds to Ex 1 in Unit 1
In a recent bulletin the Securities & Exchange Commission (S.E.C.) noted that, while investment
fees may seem inconsequential at first, "over time they can have a very profound impact on
investment returns." To illustrate, the S. E. C. considered the impact of fees in a simple situation: a
1% annual fee on a $100,000 portfolio that grew 4% annually over 20 years. The S. E. C. claimed
that this investment would grow to about $180,000 over 20 years, whereas without fees it would
have grown to about $220,000. Use Excel to answer the following:
(a) What exactly does the investment grow ... Show more content on Helpwriting.net ...
(another 5 points)
3. The Break Even Company (20 points)
The Break Even Company hopes to break even in the first year producing their new product. The
price of its product is $10 per pound; its variable cost is $5 per pound; and its fixed cost is $50 per
day.
(a) Give the algebraic expression for profit. Be sure to define your variables. (5 points)
(b) Using your model in part (a), how many pounds per day does it need to sell to break even? (5
points)
(c) Construct an Excel model for this problem and use it to find the profit for 20 pounds per day. (5
points)
(d) Using your Excel model, use GOAL SEEK to find how many pounds per day that the company
needs to sell to break even? (5 points)
4. One Product Company – corresponds to Ex 3 in Unit 1 (15 points)
Suppose that the quantity sold of a product at the One Product Company depends on the price that it
charges for the product. Specifically, as its price gets higher its sales decreases according to the
following Sales Response Curve:
# units sold = 115 – price/40 (This is valid for prices between 0 and $4600.) The variable cost for
making the product is $1,000 per unit and its fixed cost is $10,000.
(a) Give the algebraic expression for profit. Be sure to define your variables. (5 points)
(b) Using your algebraic model in part (a), what profit will the Company make if it sells at a price of
$2000? (for practice only – don't hand in)
(c) Using your algebraic model, what price should the company

Nissan GT-R Research Paper
Nissan GT–R R35 is the one of the cheaper supercars anyone can buy. The 2015 GT–R is listed as
low as $101,770 which is a lot less than your average Lamborghini or Ferrari. Brand new
Lamborghini's usually start at around $191,900 – $259,100 this making a huge difference. As also,
the Ferrari 458I coming in at a price of $233,509. The GT–R defeating both of these cars in the a
quarter mile race. There are many more cars than just these two such as the Audi R8. The GT–R is a
regular street–legal coupe with a V6 engine twin turbo car, yet it can accelerate from 0 to 60 mph in
2.8 seconds. Helping it able to do this is its 6–speed dual clutch automated manual transaxle clutch.
The GT–R is an all–around better car for its speed and price. The Nissan GTR–R35 is one of the
best super cars to buy, beating better rival cars and the cost being a huge deficit. What makes this an
incredibly fast car is its all–wheel drive transmission. This allowing the car to get all four wheels to
the road with horse power behind it. Then with almost equal weight to on the front and back side of
the car which making the car very well made with weight distribution. Next is Nissan's engine they
... Show more content on Helpwriting.net ...
The benefit from it is that it's so cheap and also, beating bigger competitors that are worth more. As
an example used above the Lamborghini Gallardo and the Ferrari 458i. Another great feature on
why it beats these cars is that the engine is hand built. Every single part is put on by a man to perfect
precision so there are no mistakes. Also there are two twin tubro's to help go along which makes this
car faster than the bigger competitors. The GTR might not beat cars that are worth in the millions
but it still beats a decent amount of cars that are priced in the 200,000 –400,000 dollars group. The
Nissan GTR–R35 is one of the best super cars to buy, beating better rival cars and the cost being a
huge deficit in

Establish And Adjust The Marketing Mix
Establish and adjust the marketing mix Assessment Task 2: Project – Determine the marketing m 1.
For the new marketing opportunity and in relation to the product or service, answer the following
questions? Product: Who is the product or service aimed at? corporate customers–the aim of
varinder car dealership is to target the corporate customers because they always need a good product
and after using that product they have to trade in that product and to get the new one which is very
good for business because first thing they are buying another new product and giving old product
back to the business. What key features and benefits does the product or service provide? Product or
service key features Explanation Its purpose To provide ... Show more content on Helpwriting.net ...
The most important features of the product or service: To provide the ease and convenience of
transport Customers pay and purchase on site or to be delivered to doors The most

Determining the Prices of Products
With the coming of the global marketplace on the Internet, would "Uniform Global price" become a
reality?
Introduction:
What is the 'Price' of a product? How is the price of a product determined? Why is the price of an
Apple iPhone relatively higher than the price of other Smartphone having the same or even more
features? Read on ...
Pricing is one of the key functions of the finance as well a marketing department of any company
whether it is a manufacturing concern or a service provider. On one hand, the finance department
decides the margins and other costs involved in bringing the product or service to a condition for
final consumption, the marketing department analysis the market conditions, determines the
consumers purchasing power ... Show more content on Helpwriting.net ...
During the initial years of e–commerce, many predicted that the internet would lead to a 'frictionless
economy' with lower search costs and availability of better information over the internet. Generally
people feel that if a product is purchased online, they would be in a position to take advantage of the
fixed price displayed online which would in most cases be lower than the retail prices in the
customer's country. However, the headline price displayed is not always depict the full cost of
purchasing that product as the 'hidden' costs are not mentioned. Hidden costs may be shipping
charges (postage and packing), tax liable on purchase.
Several efforts have been made to standardize the way prices are display and online shopping
websites have been very helpful in providing comprehensive details about the cost of products sold
online. Inspite of such efforts made, there are still some unresolved issues concerning the local taxes
which differ from country to country.
Ethnocentric pricing policy
According to this pricing policy the prices are set uniform across the world and the importer absorbs
fright and import duties. This is the simplest of all as no knowledge of the competitors prices and
market is required but the disadvantage of such pricing policy is pricing does not respond to the
market conditions of each national market thus it does not help to maximize the company's

The Price Unlimited Corporation Has Invented The Engine Of...
The Futures Unlimited Corporation has invented the engine of rocket car. As the inventor, the
company currently has a patent on this specific product. Only this firm has the exclusive right to
control and distribute the quantity of this certain isotope of plutonium on the market. Therefore it is
enjoying a monopoly and will maximize its profit. The profit maximizing behavior of a monopolist
is explained below:
Profit (π) = Total Revenue (TR) – Total Cost (TC) = P×Q – TC
According to the FOC of profit maximization, we get dπ/dQ = (d(TR))/dQ – (d(TC))/dQ [Here P is
not fixed]
= MR – MC = 0
Therefore MR = MC As a result, a monopolist sets a price where its MR is equal to its MC. From
the above figure, we can determine that the ... Show more content on Helpwriting.net ...
A monopolist can also perform price discrimination. When different prices are charged by a seller
for essentially the same product it is known as price discrimination. The monopolist often wants to
segment the market according to the price elasticity of demand (e) and charge higher prices for those
consumers with lower elasticity of demand, according to the mark–up formula. Therefore Futures
Unlimited Corporation can also discriminate its price. Direct price discrimination can again be sub–
divided into three categories – first–degree price discrimination, second–degree price
discrimination, and third–degree price discrimination. With first degree price discrimination, every
firm would like to charge a different price to each of its customers. If possible, the firm would
charge each consumer the maximum price that consumer is willing to pay for each unit bought. The
maximum price the consumers are willing to pay is known as the customer 's reservation price. The
act of charging each customer his or her reservation price is called first degree price discrimination
or perfect price discrimination. In second degree price discrimination, price varies in according to
quantity demanded. Within some markets, each consumer purchases many units of the good over
any given period, and the consumer 's demand declines with the number of units purchased. In this
situation, a firm can discriminate according to the number consumed. This is

Assignment 2: Case 3-3, Easycar.Com Essay
Assignment 2: Case 3–3, easyCar.com
1. In Western Europe, the rental car industry is made up of many companies competing against each
other, but only a handful of companies are actually dominant. According to the text, in most
countries, the companies that were dominant were national or regional companies rather than
companies that had a strong international presence. Many smaller companies also operated in each
different country but generally only operated in a few locations. The rental car industry in Europe
can be split into two segments: a business segment and a leisure segment. The text says that the
business segment wasn't very price conscious, whereas the leisure segment was very price
conscious. These characteristics can influence ... Show more content on Helpwriting.net ...
The car was also to be cleaned thoroughly before returned and although it's always good practice to
do a quick cleanup of a rental car, not many companies require a customer to get the car detailed
inside and out. These policies don't really make me eager to use them when I'm looking for a rental
car, despite the lower price.
4. EasyCar could be a viable competitor to taxis, buses and trains because of their cheap prices. In
some cities, taxis are pretty expensive so if easyCar's prices are lower, then they would likely be an
option that people would choose instead. Buses and trains in Europe aren't that expensive and trains
especially can get a customer to a place they need to be pretty fast, so I'm not sure easyCar would be
as much competition for them.
5. By offering cheaper prices for people who make reservations on easyCar.com, the company
seemed to be looking at competing with the dominant companies. Their advertising line of "the best
reason to use easyCar.com can be found at hertz.nl" would indicate that their website is better and
easier to use than Hertz. To compete with companies like Hertz, they need to have lower prices but
they need to have better

Louis Vuitton : The External And Global Environments Essay
Case 14: Louis Vuitton in Japan
Company Name: Louis Vuitton in Japan
Topic of the Week: The External and Global Environments
Synopsis of the Situation Louis Vuitton "was established in France in 1854 by Louis Vuitton and
became known as one of the oldest French luxury fashion houses" in the industry (Pearce &
Robinson, 2013, p. 14–2). The firm's products range from high quality "leather goods, handbags,
trunks, shoes, watches, jewelry, and accessories"; manufactured by highly skilled and expensive
laborers in France (Forbes.com, 2016). In addition, Louis Vuitton market their products "in 50
countries with more than 460 shops and generates more than €7–billion ($9.5–billion U.S.) in
annual sales" (Wendlandt, 2013).
For years, Louis Vuitton enjoyed high profit margins from the luxury market in Japan until other
competitors such as Prada and Gucci entered the market. Counterfeiting also became a threat to the
firm's brand by satisfying consumer demand at lower prices. Other external global environmental
problems included highly priced products, limited availability in stores only, and a heavy
dependency on the Japanese market (Pearce & Robinson, 2013, p. 14–18). Moreover, "the after–
shocks of the global recession were a threat to Louis Vuitton's luxury business in Japan", and
Japanese women became less interested in the brand's products (Pearce & Robinson, 2013, p. 14–
18). Alternatively, Louis Vuitton could "reinvent itself and regain what used to be its well–attested

Personal Narrative: Reducing The Price Of Cars
My family owns a Volvo 2008 XC 90. We have had it for about 7 years. We like it, but would like
some sort of an upgrade. We looked on Kelley Blue Book to see what the trade in value for our car.
It is worth about 5k. Not a bad price, but we could have gotten a better one. We looked on the
internet to find a hybrid. We found a few choices, but narrowed it down to the 2016 Toyota Prius
Two Hatchback. It costs from $24,095 to $22,095. If we reduce the price compared to our trade in
value, we get an $18,095 car. This is a good price, but we also have to consider some other things as
well. First, we will looked at the mileage. We drive about 1200 miles a month. If we take the price
of gas, which is about $2.20 per gallon, we pay about $121 in one month. If we take it one step
further, we pay about $1,452 in one year. A lot of money for travel. So how much does this hybrid
save us? Well based on the mileage, the cost of gas, and ... Show more content on Helpwriting.net ...
To do this we subtract $18,095 and $73.02 twelve times to represent the twelve months. If we do
this we get a reduction of $17,218.76 which means we regained only $876.24 in one year. Now that
may sound like a lot, but this actually a pretty small amount. So every year we regain $876.24 to our
account. If we subtract 876.24 from the car price, it would literally take us 20 years and a half to
regain all that money from buying the hybrid. That is a super long time even though we saved a lot
on gas. Overall I think that buying a hybrid vehicle for our family is a bad idea. It would take way
too long to repay even though we save a bunch on gas. In 20 and a half years, I would be out of
college and living my own life. My parents would have probably sold the car already. I think it is
just a waste of money to buy this vehicle. It wouldn't be that great financially even though it helps
the environment. Buying a hybrid vehicle is a bad idea to

Essay Internal Supplies by Kamp Motors
Case Study: Internal Supplies by Kamp Motors
CASE:
Involves two companies namely:
1. Vecu ▪ A French company that produces cars, Lorries, buses and agricultural machinery.
2. Kamp ▪ One of Vecu's subsidiaries ▪ An International leader in the field of engine production ▪
Develops racing car engines for many years
Kamp produces four main types of car engines
Type 1 – conventional type / sells externally
Type 2, 3 & 4 – high tech types / sell internally
Financial Data on Kamp Motors 2001 (x €1 million)
Sales = 361
External Cost = 204
Staff = 98
Depreciation = 20
An important order in 2002 (Develop Type 2A engine)
Quantity = 5000 engines
Variable cost per unit = 2500
Full cost per unit = ... Show more content on Helpwriting.net ...
In my own opinion the transfer price that Kamp should insist on for the Type 2A engine now is
€3450 per unit. This is using the principle of the minimum transfer price which is the variable cost
plus the profit if it sells its engines externally then adds the cost of €200 of developing the Type 2A
engine. However in the future the price may increase because fixed cost will be added as capacity
may become a problem with the expected rise of demand for cars and engines, and also if Kamp is
allowed to sell externally the type 2, 3, and 4 engines, so the price in the future should be €4750.
The proposed transfer price now is also lower than the expected prices from Black and FER so it
should not be a problem with Guy Mercier who is pressuring Kamp to sell the engine at a reasonable
price so that he can raise profit and bonus for his division.
Problem No. 2

Please discuss the possibilities of increasing Kamp's profit by using the formula for basic cost per
unit and by reorganizing. Please use a concrete example to indicate how the board of Kamp can
manipulate the unit costs for the types 2, 3, and 4 by reorganizing its cost information system. How,
do you think, can the boards of the Vecu concern and the MB division determine whether Kamp
manipulates data on unit costs?
Answer:
Kamp usually supply 4 types of engines, type 2, 3

Case Problem Analysis Paper
Purchasing a car is never an easy decisions but many times a car is a necessity. The scenario
presented will be the following. The price of the used car is $20,000. Sales tax on this car is 8.4% of
the price of the vehicle. You intend to finance the entire cost of the car and sales tax, less a down
payment of $1,500. You intend to finance the car for 48 months and your car payment will be
$455.12 per month. The amount financed will be the cash price subtracting the down payment. In
this case, the cash price will be $20,000 and the down payment is $1,500. After subtracting these
two amounts, I obtained that the amount financed will be $18,500. The installment price of the car
will be $23,345.76. This amount is obtained by multiplying the amounts of financing by the monthly
rate (48 x $455.12) which will equal $21,845.76 in addition you must add the down payment of
$1,500 to get the total value of the car. Finance charges will be the total amount of $23,345.76
minus the cash price of $20,000.00. This will leave a finance charges to equal $3,345.76. ... Show
more content on Helpwriting.net ...
You may walk in with one thing in your mind but when you see the option available to you to
purchase something else it may become hard to focus on your original task. Considering how many
prices have inflated and many times things cost more than we expect it is hard to pay a car in cash
up front. It does have its advantages that you will avoid finance fees and interest costs ("Should I
Pay Cash, Lease or Finance My New Car? – Cars.com," n.d.). You also walk away debt free but it
may take months or years to obtain the amount of money needed to purchase the car. Financing a car
is always an easy option. This allows you to pay a fixed rate for a certain amount of time. Financing
allows you to build credit as well give you a sense of responsibility. Financing also increase the
original price of the car

An Overview of Target Costing
1
AN OVERVIEW OF TARGET COSTING
Introduction
Many managers often underestimate the power of target costing as a serious competitive tool. When
general managers read the word "costing", they naturally assume it is a topic for their finance or
accounting staff. They miss the fact that target costing is really a systematic profit and cost
management process.
What Is Target Costing?
CAM–I defines target costing as the maximum amount of cost that can be incurred on a product and
still earn the required profit margin from that product. This is captured by the equation
Target Cost = Price – Profit
At first sight the equation appears to reverse the familiar cost plus price equal profit that many firms
use. However, behind the inversion of ... Show more content on Helpwriting.net ...
Together the two variables determine a market price for the product.
Setting prices for new models of existing products, such as this year's model of a video cassette
recorder (VCR), starts with the current prices. These prices are adjusted for the features added or
dropped. For example, assume we add to the new VCR the ability to view tapes in different formats
(NTSC, PAL and SECAM). Also assume that we delete an FM radio which was on the previous
model since it is not popular. The revised price may be set by taking the current price, adding the
price that customers are willing to pay for the multiple format feature and deleting from this price
the value customers place on the radio.
Setting prices for new products is not easy since there is no existing base to start from. Market
research becomes crucial for this type of product. Fanack, a Japanese company, uses a simple
formula that sets the price at a level that gives them a five–year lead over their competitors. Another
technique is to use the prices for substitute products to develop an initial prices. For example, fiber
optic cable prices may form the basis for pricing satellite–based communication links.
3
The profit target, the second variable in the target costing equation, is set relative to the financial
rate of return that a firm needs to stay viable in its industry. Since return on sales is part of the return
on investment formula, firms often use

The Major Impacts Of Car Advertising And Its Impact On...
Have you ever been in a situation where multiple salesmen start giving you advice to persuade you
to buy this vehicle, but you do not know whose advice to take? Car buying has become increasingly
difficult for many new comers as the sales people try to convince you to buy a more expensive car
than you actually need. How would you decide to find a car that is perfect for you? Most consumers
usually base their decision on ads of the cars and car's brand. Advertising has a major impact and
sway consumers one way than another usually to buy a product. These ads influence many of
decisions from buying clothes to buying cars through many forms of media: newspapers, tv ads,
social media, and more. Advertising has been around since the ancient civilizations. Ever since
people have been selling product to others, ads have been placed strategically to lure consumers and
buy their product. Business owners usually try to place ads in newspapers, on building, benches and
more, so they are recognized by the public more. The advertising business has dispersed into many
areas of product from food to houses and more. Luxury cars officially became a category of cars in
the 1920s when "Advanced technology and old–fashioned craftsmanship became keynotes" and
"people with enough money to buy the finest cars available" emerged. These category of cars
typically attracted wealth consumers as with living in luxury requires a significant amount of assets.
The wealthy usually succumb to these types

Assessment of Used Car Negotiation

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