Question

Your company makes a similar product for three different customers. One customer demands 100% quality inspection...

Your company makes a similar product for three different customers. One customer demands 100% quality inspection of product before shipping. The added cost of that inspection are spread across all three customers. If you charge the customer the cost of the 100% quality inspection, you could loose the customer and experience a loss. Further, the other two customers do not question what they are paying.

What actions (if any) do you take?

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Answer #1

As the charging 100% cost to that customer may results in sudden increase in the price of the product and may loose in customer. Hence cost of inspection will be distributed among all the three customer products equally so that there will be no chance of losing any customer and the price is alsoe same to all the three customer.

And due to this approach there will be no chance of price discrimination among the all thre customers.Hence cost of inspection will be distrubuted among all the three customer products.   

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