Instructions

Paul Bowlin owns and operates a tree removal, pruning, and spraying business in a metropolitan area with a population of approximately 200,000 people. The business has grown to the point where Bowlin uses one and sometimes two crews, with four or five employees on each crew. Pricing has always been an important tool in gaining business, but Bowlin realizes that there are ways to entice customers other than quoting the lowest price. For example, he provides careful cleanup of branches and leaves, takes out stumps below ground level, and waits until a customer is completely satisfied before taking payment. At the same time, he realizes his bids for tree removal jobs must cover his costs. In this industry, Bowlin faces intense price competition from operators with more sophisticated wood-processing equipment, such as chip grinders. Therefore, he is always open to suggestions about pricing strategy. Directions: Read through the case study Business Marketing and Pricing Strategies given above and answer the questions below. What types of costs should Bowlin evaluate when he is determining his break-even point? What pricing strategies could Bowlin adopt to further his long-term success in this market? How can the high quality of Bowlins work be used to justify somewhat higher price quotes? In 500-750 words