8.1 Value-in-Use Pricing (Figure 8-6)

Analysis Scale
Usage Costs Competitor Company Cost Difference  
Price
$2.00
$
$2.20
$
0.20
 
Shipping
$0.07
$
$0.05
$
-0.02
 
Handling & Installation
$0.10
$
$0.13
$
0.03
 
Inventory
$0.05
$
$0.01
$
-0.04
 
Financing
$0.00
$
$0.00
$
0.00
 
Usage
$3.50
$
$2.80
$
-0.70
 
Repair & Maintenance
$0.03
$
$0.01
$
-0.02
 
Waste
$0.10
$
$0.02
$
-0.08
 
Waste Disposal
$0.15
$
$0.03
$
-0.12
 
Other
$0.00
$
$0.00
$
0.00
 
Other
$0.00
$
$0.00
$
0.00
 
Total Usage Costs
6.00
5.25
-0.75
 
Starting Data Scale
Usage Costs Competitor Company Cost Difference  
Price
$2.00
$
$2.20
$
0.20
 
Shipping
$0.07
$
$0.05
$
-0.02
 
Handling & Installation
$0.10
$
$0.13
$
0.03
 
Inventory
$0.05
$
$0.01
$
-0.04
 
Financing
$0.00
$
$0.00
$
0.00
 
Usage
$3.50
$
$2.80
$
-0.70
 
Repair & Maintenance
$0.03
$
$0.01
$
-0.02
 
Waste
$0.10
$
$0.02
$
-0.08
 
Waste Disposal
$0.15
$
$0.03
$
-0.12
 
Other
$0.00
$
$0.00
$
0.00
 
Other
$0.00
$
$0.00
$
0.00
 
Total Usage Costs
6.00
5.25
-0.75
 
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