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Communication Practice

XIII. With your partner act out a role play about a fresh drinks business.

Student A and B

The idea for fruit smoothies came from your relatives and friends realizing they had a bad diet and no time for healthy eating in their busy lives. You have no experience in the drinks industry. You create the drinks themselves, mixing different fruits together. The biggest argument for the drinks is their freshness and lack of preservatives. The biggest argument against this product is its high cost and short shelf live. Now you are discussing a price of your product, advantages and disadvantages of various types of price strategies in order to choose the most suitable one for your product. In your conversation use Figure 8.2.

XIV. With your partner read a case act out a role play to solve the problem.

Pacioli 2000 is a $49.95 accounting software programme for IBMcompatible computers that competes with programs priced at $500 or more. The program has the ability to handle 36 accounting periods. It comes with a videotape that explores the basics of MS-DOS and accounting. Unlimited technical support is provided at no additional charge; and unlike with most other programmes, the $50 price for Pacioli 2000 enables users to use the programme in a network; there are no pre-user or per-site license fees.

Jose Hurtado, Pacioli 2000’s developer, has priced the programme low intended to attract a mass market, which would buy then supplies from his firm.Nonetheless, some experts believe Pacioli 2000 is priced so low that customers may not take it seriously. In addition, the low price does not provide enough profit for the programme to be sold by traditional software retailers. Some analysts question whether the low price will allow the developer to upgrade the product properly.

Student A

You are a consultant to M-USA, the maker of Pacioli 2000. What would you recommend regarding its price strategy? You should submit your observations and recommendations to Jose Hurtado.

Student B

You are Jose Hurtado, Pacioli 2000’s developer.

(Source: Based on material in Peter H. Lewis, “Does Software Lose Credibility When It’s Expensive?” New York Times (July 1, 1990), p.7.)

Writing

A Letter Layout

The parts of the letter are in the wrong order. Rewrite the letter correctly. Which part of the layout is missing?

1)

Transworld Freight plc.

2) Accounts Department

74 Dockside

 

Household Design& Co Ltd

Manchester M15

7BJ

22 High Street

 

 

 

Manchester M1 2BL

3)

Tel: Manchester

(STD 061) 8537272

 

71

Fax: TRANSWLD 668013

 

4)

Dear Sirs

5) Our ref: LS/sp

 

 

Your ref:0455/004

6)

Your faithfully

 

7) Elizabeth Shepherd(Mrs)

Senior accounts clerk

8)13 April 2013

9)dated 6 April is incorrect.

10)$ 65.00 and adjust our next statement accordingly.

11)on the price with your salesman.

12)I would be grateful if you could issue a credit note for

13)I am so sorry to inform you that your invoice (ref 0455/0004)

14)behalf and she told me that she had agreed a 10% discount

15)I have spoken to the employee who bought the chairs on our

(Susan Norman We’re in Business Workbook, p24)

Vocabulary Review

Test yourself

Translate the following word combinations for Russian into English.

1)назначить максимальную цену;

2)суммировать расходы на производство, транспортировку и обслуживание покупателей;

3)установить минимальную цену за единицу товара;

4)исследовать эластичность спроса на товар;

5)следить за динамикой цен на рынке;

6)повлечь 10% снижение цены;

7)рассчитать прибыль на единицу товара;

8)налагать штрафные санкции.

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