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Lesson 16: Comparing products and prices
Kate: The "Boss" isn't doing as well as we had hoped. We didn't launch on the right time. I myself don't think the market was ready for us. Dyla Dan came later and cheaper. Maybe we should move down market in a couple of key territories.
Edward: Excuse me! Can I interrupt?
Don: Sure.
Edward: I've just got a call from Daniel McNeal at Iremart.
Kate: Oh, really?
Edward: He wants a meeting to disscuss discounts, also he's talking about the substantial order. He wants better terms than I can authorize. Would you prefer to deal with him yourself?
Don: How large discount did he want?
Edward: He didn't say but I think it's higher than anything we've ever given before. He loves the product though. I think he's ready to negociate.
Don: I think it's time we work on it together. Do you agree?
Edward: Yes.
Kate: Edward. Are you coming down to the workshop? Derek wants to share us his latest idea.
Edward: Ok. I'll join in later.
Don: No. I think Derek wants to talk to the whole team.
Don: Come on.
Kate: Well, it's a terrific idea. But how much will it cost to develop?
Derek: Not as much as you think.
Kate: It will be too expensive!
Derek: No, not really. I have prepared a long detail careful analyses of the development costs. See for yourself.
Kate: It will never sell. Who's the market for this?
Derek: It's more up market than Big Boss but it was still appeal to kids as well as excecutives and office workers.
Kate: But that's the problem, Derek. There is no market focus. Do you remember the Easy Right 2 years ago?
Kate: We had a beautiful, well-design but expensive product. It was great.
Parents and children could both use it, but could we sell it? No, it failed because we haven't define down a market.
Derek: But this is different. This is more fun than Easy Right.
Don: The costing looks okay but it has too many moving parts.
Derek: So, this is a car but that seems to sell.
Kate: That's not the point. The more moving parts you have, the more likely something will go wrong.
Derek: I don't agree.
Don: Let's just hold on a second and think about this.
Don: Now, Derek you like the concept and think it will sell.
Don: Kate. You can't see a market for it?
Kate: I can't see where it fit in our product range.
Don: I and Clive do agree with Kate. This is much more expensive than anything else we market.
Kate: Although it is a wonderful idea, we just want to be able to sell it. You must see that yourself, Derek.
Derek: Well, not really.
Don: Edward. What do you think?
Edward: Can I just check something here, Derek?
Are you saying that's the plastic thin enough and flexible enough to make this realistic?
Derek: Exactly.
Edward: That's brilliant. On paper I think It's the most remarkable thing I've seen.
Don: Well. Maybe Edward has something. Maybe we're going to have a closer look