Marketing Strategy and Tires Research Paper

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A three percent increase on the per-unit price of $170.98 cited above for individual tires from the specific Elk Grove, California location would come to a price of $176.11 for a single tire, or $704.44 for a full-priced set of four (Big-O-Tires, 2012). If the discount offered on a set of four were to remain the same, the price for four tires would be $634.44 for a set of four, which translates to a per-unit price of $158.61; if the discount were increased along with the increase in tire price, say to $75 for a full set of four purchased at the same time, the price for the set of four would drop to $629.44, or $157.36 per unit. The current coupon is limited in timeframe, however, and while it is expected that Big-O-Tires will continue to offer coupons and discounts these offers change regularly, and it is unlikely that a discount will be offered on Michelin tires in six months (Big-O-Tires, 2012).

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Therefore the original given estimate without nay discount for a purchase of four is expected to be in place, and to be useful.

In one year, if the same price increase occurs (for a total of a six percent increase from the current price), the per-unit price would be $181.24, with a price for four coming to $724.96. Again, no discounts are expected to be offered on a set of four tires in the next year from this location. Thus these prices are expected to remain solid projections without adjustment......

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