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Business
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| Number of pages / Number of words: |
3 / 631 |
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Standard could offer customized rebate packages to its premium customers, like Occidental. Although they are, in effect, lowering their prices for Occidental, they are not sending a negative signal to the market. An outright price decrease could create a price war, where their competitors continue to drive down their own prices, further commoditizing Standard’s line of products...
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A rebate would offer an incentive for Occidental to purchase, because the company knows that they will be rewarded on the back end.
Another way for Standard to remedy this pricing situation is to offer additional services along with its milling machine in order to further differentiate themselves from their competitors...
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