Tupelo Medical: Managing Price Erosion Case Solution & Answer

This Case is about PRICING

PUBLICATION DATE: February 11, 2013 PRODUCT #: KEL707-PDF-ENG

Pricing supervisor for Tupelo Medical, Robert Davidson, was concerned regarding the variability in cost paid for its top-selling merchandise, the Micron 8 Series blood pressure tracking system. Using historical transaction data, the suitable price floor must be determined by Davidson. Establishing a cost too high risked the loss of a lot of consumers, getting the organization at significant danger because of the value of the merchandise. Establishing a price too low would affect the capability to satisfy the stated goal of raising gross profits by 3 percent of Davidson. Also, the company of the company’s changed significantly by account type, account size as well as geographic region.

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