You are a sales and customer relationship officer at the CoffeeVille East Melbourne Store. You are responsible for building client relationships in the groups (organisations and business catering) consumer segment. Consider the following information: Your delegation limit for discounting is 5% or $500 for transactions. All agreements such as ongoing discounts over 5% strategic partnership arrangements such as joint marketing or exclusivity arrangements should be noted in writing and signed by a person with appropriate delegation. Several clients have contacted you to set up a meeting to discuss a range of issues and proposals: You know that one client (from Australian Hardware Melbourne Office) would like to negotiate a discount of 15% on catering costs. Your manager has initiated a firm policy of only giving a maximum of 10% discounts. The discounts policy is in place to ensure CoffeeVille remains profitable (Coffeeville operates on very narrow cost margins) and to allow it to source Fair Trade and environmentally friendly, organic produce. You know that another client (from Melbourne Car World) is interested in setting up a strategic partnership with CoffeeVille in which they would offer a discount to their employees on coffee. The obvious benefit to CoffeeVille is the promotion and increased business from Car World employees. On the other hand, there is a risk of this benefit being diluted if Car World enters similar arrangements with competitors. Your manager has determined that any such partnership needs to be exclusive. Your manager has agreed in advance to throw in a 10% maximum discount on both coffee and food. Several clients have expressed concern about the privacy policy of CoffeeVille. They are worried that their information may be used without their consent. You may need to inform them of CoffeeVille's policy details.

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter20: Setting Prices
Section: Chapter Questions
Problem 2DYMP
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You are a sales and customer relationship officer at the CoffeeVille East Melbourne Store. You are responsible for building client relationships in the groups (organisations and business catering) consumer segment.

Consider the following information:

Your delegation limit for discounting is 5% or $500 for transactions. All agreements such as ongoing discounts over 5% strategic partnership arrangements such as joint marketing or exclusivity arrangements should be noted in writing and signed by a person with appropriate delegation.

Several clients have contacted you to set up a meeting to discuss a range of issues and proposals:

You know that one client (from Australian Hardware Melbourne Office) would like to negotiate a discount of 15% on catering costs. Your manager has initiated a firm policy of only giving a maximum of 10% discounts. The discounts policy is in place to ensure CoffeeVille remains profitable (Coffeeville operates on very narrow cost margins) and to allow it to source Fair Trade and environmentally friendly, organic produce.

You know that another client (from Melbourne Car World) is interested in setting up a strategic partnership with CoffeeVille in which they would offer a discount to their employees on coffee. The obvious benefit to CoffeeVille is the promotion and increased business from Car World employees. On the other hand, there is a risk of this benefit being diluted if Car World enters similar arrangements with competitors. Your manager has determined that any such partnership needs to be exclusive. Your manager has agreed in advance to throw in a 10% maximum discount on both coffee and food. Several clients have expressed concern about the privacy policy of CoffeeVille. They are worried that their information may be used without their consent. You may need to inform them of CoffeeVille's policy details.

 

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