A sales meeting
Brian Connor is the director of sales QbeX Products. Brian´s department keeps track of how many of each product
the company is selling and how much profit they´re making. He works with the team of sales representatives who
market Qbex products in the U.S. and other countries.
All of the sales "reps" come to New York once a year for a big conference. During the meeting they listen to
presentations that describe the company´s new products. They hear about what the competition is doing, and they
discuss how they can increase sales.
In today´s meeting the discussion is about the XKP 20, a computer that´s a very big seller for QbeX Products. Carol
Cruise, a sales "rep" from Chicago, asked Mr. Connor about the competition.
Connor: Our number one competitor is Energy. They sell a machine that´s almost the same as XKP 20.
Cruise: And doesn´t it sell for less?
Connor: Yes, you´re right. It sells for about ten percent less.
Cruise: Well, if we lower our price a little we can increase sales.
Connor: I don´t think we want to do that. We´re only making a small profit now. And you know, production costs
are increasing all the time. I think our current price is fine.
Cruise: Maybe you´re right.
Connor doesn´t want to lower the price of the XKP 20 because
a) he thinks production costs are going to increase.
b) it is a new product in the market.
c) he doesn´t want to increase sales.
d) the company is making a big profit on the XKP 20.