counting machine alter final

7/27/2019 Counting Machine Alter Final

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COMPANY PROFILE: VIGNESH AND COMPANY

Vignesh & Co is an organization with its vast approach towards empowering with

new technology since 1990. We are engaged in selling Currency Counting Machine,

Forged Notes Detector, CCTV camera and Paper Shredder.

We understand the risks involved in every walk of life as in shops, banks,

exchange centers, etc who have placed their trust on these electronic machines to save

them from loss or fraudulent practices.

The efficiency of these machines is remarkable and worth the buy with technology

becoming more popular and purposeful. Further, our fake note counter display tool plays

a vital role in fraud detection in complex areas.

Our ranges of products also include CCTV cameras to the product list which

debates on the video security system. On the whole, CCTV Surveillance Camera,

Security Camera, Speed dome Camera, Day Night camera, is some of our core specialty

products.

The security of the individuals namely personnel, company or organization these

cameras provide security and unwanted intrusion into the premises.

Paper shredder is simply a perfect device to manage waste, properly destroying

marketing plans, health records, other confidential information falling into wrong hands.

ASTRA shredder is being marketed here along with its enhanced CD shredder in it.

With our research from ten years we want to ensure the clients that our company

is build upon trust and protect individuals from risks and provide safe environment. Our

distributors can validate our services and offers based on their satisfaction. We will offer

these services based on their requirements and preferences.


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We are looking for hard working distributors Nationwide forAstra Currency Counting

Machine and Astra Fake Note Detectors.

Nature of Business ManufacturerTurnover Rs. 50 Lakh - 1 Crore ( or US$ 100 K - 200 K Approx.)Company name : Vignesh & CompanyMobile / Cell Phone : +(91)-9842249023

Telephone : +(91)-(422)-2522235

5372721

+(91)-(422)-5373721

Fax No : +(91)-(422)-5372721Address : No. 539- A, No. 100 Feet Road, Gandhipuram,

Coimbatore - 641 012, Tamil Nadu, IndiaWeb page www.vigneshandco.com

OUR VISION

To provide accuracy and security to the end-users against all frauds and

insecurities with strong roots.

OBJECTIVES

1. Quality - The quality of the currency handling equipment is reliable and the employees

with the state of the art equipment to deliver customer satisfaction.

2. Durability or Life Span of equipments - The durability of the equipment withthrough excellence to improve the quality is what we are more focused upon. With our

Research& Development team we look for innovation and betterment of equipment.

3. Low consumption of energy - The energy consumption of these equipments is low

when compared to other machines to make it more reliable and cost effectively.


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4. Guarantee of Products - The AMC (Annual Maintenance Contract) contract after the

period of one year of warranty and the availability of spares for our units.

5. Any time service - We offer any time services to our customers to make lasting

impression on them.

Staff Augmentation:

We have around ten employees who are greatly skillful in higher technology. Their

skill set has paved the way for the manufacturing of the machines.

PRODUCT PROFILES

Cash Counting Machine handles loads of cash be it old, new or soiled in same

manner.

The accuracy is simply remarkable. This currency counter is just not reduced to

the large businesses even small and businesses due to its cost-effective feature.

As technology improves, it must be used usable and purposeful.

Astra Loose Note Counting Machine: AXLNC

Astra Loose Note Counting Machine : AXLNC MG-1

Astra Loose Note Counting Machine :AXLNC MG-2

Astra Bundle Note Counting Machine: AXBNC Desktop

Astra Bundle Note Counting Machine: AXBNC Floor

Astra Currency Bundling Machine

Astra Currency Detector Machine - UVL 200 (W)

Astra Paper Shredder

CCTV Cameras


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The above mentioned Currency counting Machines having their scope in various

sectors like

Bank & Financial Institution

Hospitals

School & Colleges

Hostels & Restaurants

Shopping malls

Indian Railways

Airport Authority

Other transport services

Retail Outlets & showroom

And all other Business Firms

ASTRA LOOSE NOTE CURRENCY COUNTER: - AXLNC

FEATURES:

* Micro Computerized for Counting

* Auto Dust Absorption

* Fully Automatic

* Built-in detection system for fake note detection* Adding and Batching facility.


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SPECIFICATION:

Counting Speed : 900 pcs/min

Bank Note Size : Upto 190 x 85 mm (1000 Rupee Note)

Weight : 8 KgPower Source : AC 220V 10%, 50Hz

Power Consumption : 80 Watt

Dimensions : 310 x 260 x 210 mm

ASTRA LOOSE NOTE CURRENCY COUNTER: - AXLNC MG-1

SPECIFICATION:


Bank Note Size : Upto 190 x 90 mm

Power Supply : AC 220V 10%, 50Hz

Dimensions : 315 x 265 x 290 mm

Power Consumption : 75 Watts

Net Weight : 7 Kg

* Counterfeit Detecting Function (UV or UV & MG)

* Auto & Manual Start Counting Mode

* Addition Function, Batch Function


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* Chained Note Detection (Two Sheets)

* Size Detection

* IR (Paper Thickness Notes Stuck together) Detection

* Half-Note Detection, Dual Digital Display, Customer Display

ASTRA LOOSE NOTE CURRENCY COUNTER: - AXLNC MG-2

Specification:

* Counterfeit Detecting Function (UV or UV & MG)

* Auto & Manual Start Counting Mode

* Addition Function, Batch Function

* Chained Note Detection (Two Sheets)

* Size Detection

* IR (Paper Thickness Notes Stuck together) Detection

* Half-Note Detection, Dual Digital Display, Customer Display


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Bank Note Size : Upto 190 x 90 mm

Power Supply : AC 220V 10%, 50Hz

Dimensions : 315 x 265 x 290 mmPower Consumption : 75 Watts

Net Weight : 7 Kg

ASTRA BUNDLE NOTE CURRENCY COUNTER: - AXBNC Desktop

Model

Features:

* Auto start

* Vacuum Suction

* Preset Counting

* Bundle Counting

* Batching

* Addition

* 100% Accuracy High speed Countingor

* Micro Control Suction New & Old Currency, etc.


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Feed System : Vacuum

Counting Speed : 100 pcs/4 sec

Hopper Capacity : 200 Notes

Power Source : AC 220V 10%, 50Hz

Power Consumption : 330 Watt

Dimensions : 300 x 400 x 255

ASTRA BUNDLE NOTE CURRENCY COUNTER: AXBNC Floor

Model

Feed System : vacuum

Counting Speed : 100 pcs/4 sec

Hopper Capacity : 200 Notes

Power Source : AC 220V 10%, 50Hz

Power Consumption : 330 Watts

Dimensions : 295 x 325 x 720

SPECIFICATION

* Elegant, compact & portable, easy to move

* High Speed Operation


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ASTRA FORGED NOTES DETECTOR: UVL 200

Every organization or business is at risk when counterfeited notes are received.

Our forged note detector allows in identifying forged notes at the time of cashtransactions.

This way it is easy to minimize financial losses and embarrassment of our clients

or ourselves at time of decision making.

Our forged note detector allows in identifying forged notes at the time of cash

transactions.

This way it is easy to minimize financial losses and embarrassment of our clients

or ourselves at time of decision making.


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SALIENT FEATURES:

* Modernized Scientific Equipment to detect:

a. Forged Currency (Both Indian and Foreign)

b. Passport& Visa

c. Demand Drafts

d. Travelers' Cheques

e. Credit Cards

f. Major Company's Share Certificates.

* Useful for institutions handling cash since it reduces the risk to the staff

concerned.

* The equipment is designed to detect 100 pieces or 1000 pieces at one

strike and in a few seconds.

* A powerful lens is provided on the top of the machine to magnify the

notes features of the currency and other materials.

THE INTELLIGENT LOOSE NOTE COUNTING MACHINE

LNCM (UV)

An ISO 9001:2008 certified passed product. The Intelligent Loose note counting

machine Model Textron LNCM (UV) is very user friendly and economic loose notes

counter for worldwide banknotes and all types of currencies.

This Loose note counting machine is the best available machines for small &

medium shops, markets, hospitals, colleges, real estate builders and companies forcounting less amount of cash and any type currencies in just 4 seconds of 100 number

notes.

The best in terms of prices and user friendly with excellent feature of UV

detection and other features as presented below.


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KEY FEATURES

Accepts bank notes of Rs.5, 10, 20, 50,100,500 and1000 and other worldwide

currencies as USD, GBP, Euro, etc.

Intelligent design to operate with ease and very user friendly.

Function of fake note detection by UV inspection for checking Paper quality of

zeros currencies.

Incomplete bank note will be detected, and audible alarm sounded

Outer customer display for user Inbuilt machines dust collector and small desktop

type

SPECIFICATIONS

Size of bank note 50x110mm, 90x185mm

Counting Speed 15-20 notes per Sec.

Digital Display 4/3 digit

Power Supply 220 V 50 Hz

Operating Power Consumption 75 Watts

Dimension (275X260X225)mm

Weight 10 kgs. Approx.

ASTRA PAPER SHREDDER


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Paper shredder is simply a perfect device to manage waste, properly destroying

marketing plans, health records, other confidential information falling into wrong hands.

ASTRA shredder is being marketed here along with CD shredder in it.

SALIENT FEATURES:

* Protect identity or safeguard secrets.

* Power efficiency

* Risk management

* Power Saving


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CCTV Camera:

Nowadays everything is at risk either to the place or the person. The client

understands that security to the premise and personnel is important for smooth running ofthe organization. These surveillance cameras help in crime prevention thus protecting the

environment for the people around.

The various cameras available with us are:

* CCTV cameras

* Auto Dust Absorption

* Switcher

* Digital Video recorder

* CCTV Lens

* UTP Transceiver Accessories

* Cable Security System, etc.


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ORGANISATIONAL CHART


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VARIOUS DEPARTMENTS

The Following are the various departments in our (Vignesh and company) Company. Sales Department

Production Technology Department

Production Control Department

General Administration Department

Development Department

Manufacturing Department

Quality Assurance Department

Cost control Department

PRODUCTION TECHNOLOGY DEPARTMENT

The members of our Production Technology Department are skilled in their work,

manufacturing high precision dies in addition to placing orders to external suppliers for

special dies, as well as managing the inventory for the tens of thousands of dies that

arrive at the warehouse.

Furthermore, this department designs and puts together highly efficient processing

machines and carries out maintenance to ensure that the machines are always working

properly.

PRODUCTION CONTROL DEPARTMENT

The Production Control Department manages the status of accepted orders and

shipments, and supports the manufacturing department to achieve even better efficiency.

In addition, this department monitors the cost of manufacture and assists with cost cutting

measures.


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There are five production sub-functions

Production and planning.

They will set the standards and targets at each stage of the production process. The

quantity and quality of products coming off a production line will be closely monitored.

Purchasing department

This department will provide the materials, components and equipment required. An

essential part of this responsibility is to ensure that stocks arrive on time and are of good

quality

The stores department

The stores department are responsible for stocking all the necessary tools, , raw materials

and equipment required to service the manufacturing process.

The design and technical support department

They are responsible for the design and testing of new product processes and product

types, together with the development of prototypes through to the final product.

The works department

This department is concerned with the manufacture of products. This will include the

maintenance of the production line and other necessary repairs. The works department

may also have responsibility for quality control and inspection.

AIMS AND FUNCTIONS OF PRODUCTION CONTROL DEPARTMENT

Production is the functional area responsible for turning inputs into finished

outputs through a series of production processes. The Production Manager is responsible

for making sure that raw materials are provided and made into finished goods effectively.

He or she must make sure that work is carried out smoothly, and must supervise

procedures for making work more efficient and more enjoyable.


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In our company the production function may be split into five sub-functions:

1. The production and planning department will set standards and targets for each

section of the production process. The quantity and quality of products coming off

a production line will be closely monitored.

In businesses focusing on lean production, quality will be monitored by all

employees at every stage of production, rather than at the end as is the case for

businesses using a quality control approach.

2. The purchasing department will be responsible for providing the materials,

components and equipment required to keep the production process running

smoothly. A vital aspect of this role is ensuring stocks arrive on time and to the right

quality.

3. The stores department will be responsible for stocking all the necessary tools,

spares, raw materials and equipment required to service the manufacturing process.

Where sourcing is unreliable, buffer stocks will need to be kept and the use of

computerized stock control systems helps keep stocks at a minimal but necessary

level for production to continue unhindered.

4. The design and technical support department will be responsible for researching

new products or modifications to existing ones, estimating costs for producing in

different quantities and by using different methods.

It will also be responsible for the design and testing of new product processes and

product types, together with the development of prototypes through to the final

product. The technical support department may also be responsible for work study

and suggestions as to how working practices can be improved.

5. The works department will be concerned with the manufacture of products. This

will include the maintenance of the production line and other necessary repairs.


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The works department may also have responsibility for quality control and

inspection. A key aspect of modern production is ensuring quality. The term quality

means fitness for purpose i.e. a product, process or service should do exactly what is

expected of it.

MANUFACTURING DEPARTMENT

Each Manufacturing Section, from 1-5, performs production activities that build a

high degree of quality into every part by utilizing the productivity of each professional

throughout the production process.

Additionally, each Section strives to reach mass production quickly by

cooperating with related departments such as the Development and Production

Technology Department and the Subcontracted Management Control Section which

oversees the management of orders to our partner factories.

Vignesh and company of Manufacturing is based on a range of specialized

techniques and inter-departmental cooperation the technology to manufacture

processing machinery and dies, to create a manufacturing line, and to manage product

quality, and the cooperation that organizes these into one.

We achieve the perfect balance between high quality products and high efficiency.


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MANUFACTURING LINE:

A system of manufacturing where high quality products are produced with

maximum efficiency in order to achieve this, the creation of a perfect manufacturing

line with perfect methods and perfect machinery and equipment is indispensable.

At vignesh and companies Currency machine Manufacturing, we have created a

manufacturing line that has both sophisticated processing capability and a minimal

number of manufacturing steps, with a flexible layout that can be altered according to the

ever-changing state of our orders, while at the same time thoroughly analyzing the

production capacity of the processing machines and the number, materials and shapes of

products for processing.

Furthermore, we are always trying to improve our productivity and quality,

through measures such as reducing the time spent on each process, and making sure our

engineers are always striving to be better at what they do.

QUALITY ASSURANCE DEPARTMENT

The Quality Assurance Department maintains and improves the quality of

products manufactured within the company and at partner companies so that no defects or

flaws occur in the processing stage, and also carries out the final product inspection for

the same purpose. This department also deals with enquiries (including any complaints)

from customers.

DEVELOPMENT DEPARTMENT

The Development Department designs the manufacturing process and dies, and is

involved in prototype production and commercial production for the development of new

products and the improvement of existing products.


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This department makes improvements where necessary and builds the

manufacturing line to a high standard so that even higher quality products are produced in

a more efficient way.

GENERAL ADMINISTRATION DEPARTMENT

The role of the General Administration Department is wide-ranging and includes

accounting, labor, personnel, health and safety, purchasing, operating and managing

computer systems, managing the International Quality Standard ISO9001, the

International Environmental Standard ISO14001 and the automotive industry-specific

quality management system standard ISO/TS16949.

FINANCE DEPARTMENT

Book keeping procedures

keeping records of the purchases and sales made by a business as well as

capital spending.

Preparing Final Accounts

Profit and loss account and Balance Sheets

Providing management information

Managers require ongoing financial information to enable them to make

better decisions.

Management of wages

The wages section of the finance department will be responsible for

calculating the wages and salaries of employees and organizing the collection of

income tax and national insurance for the Inland Revenue.

Raising Finance

The finance department will also be responsible for the technical details of

how a business raises finance e.g. through loans, and the repayment of interest on

that finance. In addition it will supervise the payment of dividends to

shareholders.


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COST CONTROL DEPARTMENT

By the close monitoring of the projects' budget and expenditures, our Cost Control

System gives a fair indication of the existence and the extent of any forecasted problems

so it is monitoring and controlling the problems during project's life cycle on time before

it is too late.

The System's tools are: forecasting, cost reporting, tracking & controlling, it is

where we record the budget cost of a project and compare it with the actual cost

(including any approved budget changes-variation), this empowers our control points on

Material Requisitions & Sub-Contractors Payments Certificates.

All Client's payments are controlled, monitored and updated for all the projects

through the close monitoring to the submission date, approval date and due date of each

payment as per the contractual terms.

Our Flash Reports concentrate on spreading the cost control culture among all the

staff who are involved in initiating, planning, executing and monitoring any running

activities in our company, introducing a guideline for the staff of the best possible

practices, opening a healthy conversational channel between junior and senior staff about

any critical pointed subjects, cutting the extra costs and rectify any incorrect procedure.

Our Reporting System is a very powerful tool to the Top Management where they

review the projects' progressive financial status which forms a fundamental base to our

overall strategic organization planning.

MARKETING DEPARTMENT

Our Sales Engineers have the product knowledge and technical knowledge to be

able to discuss and plan matters such as specifications, cost and completion times in detail

with our customers.

In order to provide products that meet the needs of our customers, our sales

engineers effectively manage everything from the initial planning stage to shipment andcompletion.


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These are the main section of the market departments:

Sales department is responsible for the sales and distribution of the products to

the different regions.

Research & Department is responsible for market research and testing new

products to make sure that they are suitable to be sold.

Promotion department decides on the type of promotion method for the

products, arranges advertisements and the advertising media used.

Distribution department transports the products to the market.


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SALES ACHEIVEMENTS


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HUMAN RESOURCE DEPARTMENTS

An efficiently run human resources department can provide your organization

with structure and the ability to meet business needs through managing your company's

most valuable resources -- its employees.

There are several HR disciplines, or areas, but HR practitioners in each discipline

may perform more than one of the more than six essential functions. In small businesses

without a dedicated HR department, it's possible to achieve the same level of efficiency

and workforce management through outsourcing HR functions or joining a professional

employer organization.

Recruitment

The success of recruiters and employment specialists generally is measured by the

number of positions they fill and the time it takes to fill those positions.

Recruiters who work in-house -- as opposed to companies that provide recruiting

and staffing services -- play a key role in developing the employer's workforce.

They advertise job postings, source candidates, screen applicants, conduct

preliminary interviews and coordinate hiring efforts with managers responsible for

making the final selection of candidates.

Safety

Workplace safety is an important factor. Under the Occupational Safety and

Health Act of 1970, employers have an obligation to provide a safe working environmentfor employees. One of the main functions of HR is to support workplace safety training

and maintain federally mandated logs for workplace injury and fatality reporting.

In addition, HR safety and risk specialists often work closely with HR benefits

specialists to manage the company's workers compensation issues.


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Employee Relations

In a unionized work environment, the employee and labor relations functions of

HR may be combined and handled by one specialist or be entirely separate functions

managed by two HR specialists with specific expertise in each area.

Employee relations are the HR discipline concerned with strengthening the

employer-employee relationship through measuring job satisfaction, employee

engagement and resolving workplace conflict.

Labor relations functions may include developing management response to union

organizing campaigns, negotiating collective bargaining agreements and rendering

interpretations of labor union contract issues.

Compensation and Benefits

Like employee and labor relations, the compensation and benefits functions of HR

often can be handled by one HR specialist with dual expertise.

On the compensation side, the HR functions include setting compensation

structures and evaluating competitive pay practices. A comp and benefits specialist also

may negotiate group health coverage rates with insurers and coordinate activities with the

retirement savings fund administrator.

Payroll can be a component of the compensation and benefits section of HR;

however, in many cases, employers outsource such administrative functions as payroll.

Compliance

Compliance with labor and employment laws is a critical HR function.

Noncompliance can result in workplace complaints based on unfair employment

practices, unsafe working conditions and general dissatisfaction with working conditions

that can affect productivity and ultimately, profitability.


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HR staff must be aware of federal and state employment laws such as Title VII of

the Civil Rights Act, the Fair Labor Standards Act, the National Labor Relations Act and

many other rules and regulations.

TRAINING AND DEVELOPMENT

Employers must provide employees with the tools necessary for their success

which, in many cases, means giving new employees extensive orientation training to help

them transition into a new organizational culture.

Many HR departments also provide leadership training and professional

development. Leadership training may be required of newly hired and promoted

supervisors and managers on topics such as performance management and how to handle

employee relations matters at the department level.

Professional development opportunities are for employees looking for

promotional opportunities or employees who want to achieve personal goals such as

finishing a college degree. Programs such as tuition assistance and tuition reimbursementprograms often are within the purview of the HR training and development area.


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INTERACTION OF DEPARTMENTS

PRODUCT DEVELOPMENT:

The product (gears in this case) is developed by these three departments. The

researchers gather information on new and improved materials that can be machined.Then, the new gear system is developed using complex engineers software such as

AutoCAD.

The Buttons/Gears are tested on the computer system to see if they work. The

designers take the findings from the research and development stage and fit the new gear

system to a variety of vehicles.

All three departments work very closely together and meet at least on a weekly

basis. Sometimes they work in teams made up of researchers, development managers anddesigners.


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PRODUCTION:

Once a prototype gear system has been produced it is tested rigorously and the

design specification is passed on to the production line.

The Manufacturing Manager takes over and plans mass production. He/she works

closely with a number of junior managers who plan each stage of manufacture, to the

smallest detail (Section Managers).

It is essential that the managers of each section of production meet regularly tosolve problems and suggest improvements to the manufacturing operation.

The Manufacturing Manager has the ultimate responsibility and he/she meets

section managers twice a day for updates.

Quality control is checked at all stages and any faults/errors can usually be traced

back to the various sections of the production line.

The Manufacturing Manager will suggest improvements in design and production,

through meetings with research and development managers.

MARKETING:

Customers requirements are listened to at all times. Products are only developed

if market research shows there is a need for them.

After a new product has been developed and manufactured market researchers

follow the product through its life cycle continually asking for customer information.

In this way information can be fed back to Research and Development &

Production Line Managers. Therefore, the product can be improved.


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To develop a pricing strategy, the first step is to gather data:

Competitor prices and pricing strategies

Customer perception of products and services

Customer benefits of products and services

Cost of producing, procuring, or generating products and services (variable costs)

Fixed business costs (overhead)

The goal is to understand your business model and operating costs as well as the current

pricing strategies and price points in the marketplace.

BASIC PRICING METHODS

Once you have data in hand, apply one or more pricing methods to the specific

business and market:

Cost-Plus: Production costs are determined and then a target profit margin is

applied. For example, if a product costs $10 to manufacture, and the business

wants to make a 20% profit, the price is $12 per unit.

Targeted Return: Investment costs are determined, and a targeted rate of return

is applied to deliver the required return on investment. For example, if investment

costs are estimated to be $5 per unit, and investors seek a 10% return on

investment, the price is $5.50 per unit.

Value: The value customers receive is calculated and pricing is applied

accordingly. For example, if a personal session with a business advisor provides

the same value as a two-day seminar, the personal session could be priced at the

same level (or higher if individual attention and mentoring provides an even

greater value than group-based training).

Psychology: Psychological or emotional impact is used to determine final pricing.

For example, customers may respond more positively to a product with a price of

$199.00 than to the same product priced at $200.00.


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PRICE STRATEGY OBJECTIVES

Business strategies can also affect price. Keep in mind each strategy can have

multiple effects; some positive, some negative. The company may use pricing strategies

seeking to:

Maximize Current Profits: Higher prices, at least in the short term, can help

improve overall profit margins. Of course, over time high prices may result in

significantly fewer transactions and lower revenues.

Maximize Cash Flow: Lower prices can increase transactions and increase

overall revenue and boost cash flow but possibly at the expense of profitability. Maximize Profit Margins: Higher prices yield higher profit margins, but could

affect the quantity of sales.

Maximize Sales Quantity: Lower prices - or product bundles can increase the

total number of items sold and generate discounts or rebates from suppliers or

wholesalers.

Pricing strategies should also be tied to company objectives. The following are common

business goals and the effect on pricing:

Serve Different Market Segments: "One size fits all" prices can turn away

customers at both ends of the demographic scale. For example, if a company sells

a maintenance service, a standard monthly fee of $95 may be too high for small

customers and too low for customers who want additional services and faster

response times. Fixed prices may not be appropriate for any customer; if that is

the case, building price tiers could make sense. Serve Different Market Verticals: A company that sells individual products to

retail customers may decide to sell products to government agencies interested in

bulk purchases. Different pricing strategies are necessary to take into account

volume sales, delivery costs, and other factors unique to servicing government

clients.


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Generate New Customers: Flat fee pricing often generates additional customers,

especially if a flat fee is perceived as cheaper than a la carte purchases.

Subscription and time-based purchase agreements are common ways of generating

new customers.

Typically a company will create pricing strategies to generate new

customers at a low profit margin, and then seek to provide additional services for

additional fees.

Create Additional Sales Opportunities: Existing customers especially

satisfied existing customers are fertile ground for additional purchases. Tiered

pricing systems for services, and ancillary or complementary products for existing

products are great ways to generate additional revenue per existing customer.

Minimize Credit Sales: Retail sales are based on cash (or credit card) payments

on an up-front basis. Service businesses typically bill after at least a portion of

those services have been provided, which requires the company to in effect extendcredit.

Some businesses develop service plans that include up-front deposits or

that require up-front payments. For example, most cable companies charge for

services ahead of service delivery; the bill delivered on September 15, for

instance, may cover the time period running from Oct. 1 to October 31.

Minimize Barriers to Purchase: Time-based pricing can make an initial

purchase more attractive. Variable pricing is most often used for products

purchased from television direct marketers: "

Three easy payments of $29.95 each!" Variable pricing can make an initial

purchase more attractive as well: a company could offer a service for a reduced

rate for the first three months, with subsequent months charged at a higher rate.

The goal in that case is to give a customer incentive to try a service because the

price is low, at least in the short term.


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Keep in mind the best pricing strategies are flexible and allow a company to

respond to changes in supply or demand, new competition, changes in technology, etc.

Price strategies should constantly be evaluated and tested to ensure the company

maximizes return on sales while meeting a variety of other goals and needs.

Many companies have a significant opportunity to improve their top- and bottom-

line growth by improving their processes and execution on pricing.

As these authors point out, senior management teams must summon the analytical

skills and courage to confront their reluctance about changing prices and align their

pricing more closely with the value of their products or services.


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The Company follows the following pricing policies

Competitive parity pricing:

Here, prices are set in line with those prevailing in the market especially those

price levels set by the industry leader.

This policy is best used by new companies entering an industry in which there are

well established competitors or market leaders.

The new company may have no choice but follow the price set by established

leaders. If it falls to follow the leader (for instance, if it sets a price that is too low) the

leader may initiate a price war by setting a ridiculously low price that will rock the boat

of the business of the new entrant.

The flaw in this approach is clear. It does not consider changes in the firms own

costs and demand. If production and distribution costs increase, these will not be reflected

in the price charged as long as the policy is to charge the price that competing firms are

charging. On the other hand, if competitors increase their prices, a competition-oriented

pricer will increase his price even if the production and distribution costs remain the same

or have fallen.

LOSS-LEADER PRICING OR PROMOTIONAL PRICING:

Here, a popular product is deliberately priced low in order to attract a large

number of buyers who are expected to buy the less popular products of the firm.

The very popular and the less popular products are sold together. The aim is to sell

the entire product-line rather than to make a big profit on the popular product itself.

Pricing policies and practices should be dynamic, flexible, kept under review and

adjusted from time to time in order to reflect and accommodate changes in costs, demand,

competition, discounts, the stage in the products life cycle and the objectives and internal

resources of the company.

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