Augustine Medical
...ve a certain rate of return and be able to break-even. More specifically, Augustine Medicals pricing objectives could be: 1)Break-even after first year 2)Achieve rapid market penetration/market share 3)Achieve positive cash flow 4)Achieve some percentage return on investment Augustine Medicals pricing strategy should be a compromise due to the fact that pricing levels for both the heater/blower unit and the individual blanket vary. Since expenditures for equipment that are over $1500 are subject to a formal review, the blower unit should preferably be below this level. This combined with the fact that the competitions prices are generally above this level and the cost per unit is $380 suggest a lower price might be preferable. Thus for the heater/blower unit a penetration strategy would perhaps be most effective. This would als...