Gaps in pricing tools

Abstract

NTTF INDUSTRIES LIMITED is in the midst of most competitive post-liberalized environment. In this context, the company's existence depends quite significantly on its ability to live up to customer expectations in all perspectives. There are many companies in the field and the competition from both domestic and foreign players is getting intense. Among the factors that do affect company's profitability are geography, order size, quality, delivery and cost. Careful analysis of customers and products will steer NTTF IL into markets that are more profitable. The company should know the exact amount and origin of costs: understand its profitability dispersion and set prices according to its knowledge of customers and its own strengths and rethink strategy continually. NTTF Industries Limited (NTTF IL), operating in automotive sector for the last 35 years, is known for its premium quality tooling and auto-electrical components and products. Many a times, the premium price being offered, becomes the major hurdle to obtain orders from customers. In the recent past, due to increased competition from other growing companies, NTTF IL has lost valuable orders. The problem can be attributed to: Current pricing methodology adapted by NTTFIL, Internal costing, Increased competition, Inadequate market research activity, Steep rise in the input costs, Lack of understanding customer expectations and Mismatch between the price offered and the market trend.