Larson Inc.

Larson Inc
Larson Inc. operates in America and throughout Germany selling and providing batteries

to companies throughout these regions. Their current pricing strategy in use is the cost-plus

pricing which means that the company set the price at the production cost plus a certain profit

margin. (NetMBA.com). The pricing strategy recommendations in which Larson could benefit

from would be value-based pricing which the company would base the price on the effective

value to the customer relative to alternative products (NetMBA.com). Value-based pricing would

be effective in Larson Inc because Larson can find out what other competitors are pricing their

products at, therefore benefiting the customer by lowering the market value price to

accommodate to the customers needs and bringing in more business. Another pricing strategy

recommendation that Larson could benefit from would be the Target- return pricing. Target-

return pricing sets the price to achieve a target return on investment (NetMBA.com). Larson is

already trying to break even from their investments by using the cost-plus pricing strategy. Using

the Target-return pricing will be more effective because larson Inc. wants to achieve their target

goal in order to make profit on selling their batteries internationally. Thus, once setting a target

goal to reach as a company, employees will work more efficiently in order to reach that goal.

Providing a compensation or reward for Larson Inc. once the company has reached their target

goal would be very beneficial to the company because it will motivate the employees to do their

very best.

Non price barriers to entry will be critical to protecting the business abroad in Germany

and even more important, interests here in America. With competition so high and the economy

on the rebound, finding the right “factors that restrict the ability of new competitors to enter and

begin operating in our given...