Knight Engines Excalibur Engine Case Study

Register to read the introduction… Then based on how it goes we are more than happy to get into a collaborative negotiation with the Knights as we are looking at a long term relationship.

 I would first propose $560 + rush fee.
 Then tell them about the insurance and how investing in insurance would help them increase the guarantee of each unit being of best quality as against 4-5% of bad units.
 I calculated the highest price to be $650 with the rush fee and insurance included. Thus this would be the best price to get for the pistons.
 The lowest price that I hoped to achieve was the market price of $560, but I would be willing to go lower if needed since the alternative was to get $100 but try my best to not go below $480 as that is the production cost.
 I would go down on the rush fee or insurance fee in exchange of Excalibur branding.
 The last hurdle would be to convince them to buy from Excalibur instead of a cheaper competitor who would take longer than wanted to get the pistons ready. By taking the higher price, they would not only get the quality that they desired and they would also receive the products on time so that her company would not look bad for being