Question: D3 1. An existing Barclays client processes approximately 150,000 EFT transactions per month has acquired a business which process approximately 35,000 EFT transactions per month

D3

1. An existing Barclays client processes approximately 150,000 EFT transactions per month has acquired a business which process approximately 35,000 EFT transactions per month using Bank B. Your client informs you that bank B has offered a very attractive EFT processing price, in an attempt to retain their existing business and gain the EFT transactions that is processed by Barclays. You have been asked to reconsider the client's existing EFT price to ensure that Barclays retains the existing volumes and secures the volume that is being submitted to Bank B for processing. The client's existing EFT pricing was increased by inflation to N$1.75 per transaction, including VAT during the June 2021 price review 60% of the client's EFT transactions are presented to FNB accounts During the past year, Barclays clients submitted 5,000,000 EFT transactions at a i. Variable cost of: 1. On-Us transactions is N$1,350,000 2. Off-Us transaction is N$1,800,000 ii. Fixed cost of N$2,500,000

The client is a significant revenue contributor to Barclays but the new acquisition will not influence any other revenue generated from the client. Recommend to the pricing committee a new EFT price for this client with motivation and how you will position this new price to the client?

2. Barclays have received a Transactional Request for Proposal (RFP) for a potential retail client that has no relationship with Barclays. The client has 25 stores across the country with on average 13 lanes per store. The majority of the stores are in the North of Namibia Annual turnover recorded in the past financial year exceeds N$1.8 billion and the client uses a significant portion of their cash receipts to pay creditors.

Please formulate questions you may need answered by the client which will assist you in responding to the RFP

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