EMPERIO Marketing Lab
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Price uptime for a Surat textile mill

Surat, Gujarat · Fictional practice case

The decision

A maintenance supplier’s alternative costs ₹1.2 lakh annually. Its new offer can avoid an estimated ₹2.4 lakh in downtime but requires ₹40,000 in buyer training and rollout costs.

Build a price corridor using verified buyer value.

Worked solution

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Case at a glance
₹2.4 lakh avoided downtime. ₹40,000 switching cost. ₹2 lakh net incremental buyer value
  1. Agree which downtime is avoidable and use observed machine hours and contribution per hour. Net incremental value is ₹2 lakh after one-year training cost.
  2. The illustrative ceiling is ₹3.2 lakh including the ₹1.2 lakh alternative. A ₹2.2 lakh price captures ₹1 lakh of added value and leaves ₹1 lakh for the buyer under the assumptions.
  3. Set the minimum from service cost and margin. Offer a pilot and reset the corridor if measured uptime gains are smaller.

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