A summary of the market research agency’s report about pricing is given below.

Product	Type	Market price* (Rs.)				Company's price to channel partner
		Urban metro	Urban-small metro	state capitals	Semi-urban markets	Billing Price*	Cash Discount*	Scheme*
computer monitor	economy	8000	8200	8400	8600	9000	2%	500
	premium	10000	10300	10500	11000	11000	2%	1000

*Billing price is the price at which the company bills the product to the channel partner. A cash discount applies to the billing price. The scheme is based on targets given to individual wholesalers. The market price refers to the amount at which the channel partner sells to his customer.

 Calculate the net landing costs of different models of Riesling Electronics and the corresponding profits for the channel partners across different markets (urban metro, urban small metro etc.). Do you see a trend here across product and market types? What do you think is the reason behind the trend? Please assume that the wholesaler would achieve his target and take benefit of the full scheme amount.

Answer rating: 100% (QA)

Net Landing Cost Billing Price Cash Discount Scheme Discount For Economy model Urban Metro Net Landi... View the full answer