Oct 4th, 2010 by Andy Mao
From our class discussion, we brought up the topic on whether Lieber Light Company should decrease its product price by 15% to attract more customers. Firstly, by lowering the price of the product, Lieber Light must be losing a substantial amount of profit. Attracting customers and selling more products will serve no good to the company if it means losing profit. Secondly, if Lieber light decides to stick with the original price, it might risk the chance of losing its current long-term customers. Thirdly, Lieber Light used fixed cost to calculate their overheads instead of using contribution margin which caused misleading figures.
Vancouver Light’s created such an enormous impact to Lieber light by simply finding ways to cut down its cost, thus lowering its break-even points. Hence, it was able to sell products at a relatively lower price to move its demand up. Not only is the Canadian company attracting its local consumers but also ones in America. Different SWOT analysis should be consulted and analyzed for Lieber Light to stay alive with its competitor.
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Sources:
“roof101.” Skylight Manufacturers. N.p., n.d. Web. 30 Sep 2010. <http://www.roof101.com/skylights/skylight-manufacturers.php>.
https://www.vista.ubc.ca/webct/urw/lc5116011.tp0/cobaltMainFrame.dowebct