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Topic: Business
Number of pages / Number of words: 7 / 1949
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Distributors would call on hospitals, demonstrate the system, and maintain inventory of the blanket. The distributors were paid a margin of 30 percent on the heater/blower unit and 40 percent on the blankets. The estimated direct cost of each heater/blower unit was $380 and $0.85 per blanket.

The major issue that the company was faced with is how they should list the price to hospitals...


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The company's major concerns with price was that the impact it would have on the rate at which prospective buyers would purchase the system, which would in-turn negatively or positively effect the cash flow of the company. The company was also concerned with preparing price literature for its distributors and for trade shows...


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