Paul Bowlin owns and operates a tree removal, pruning, andspraying business in a metropolitan area with a population ofapproximately 200,000. The business has grown to the point whereBowlin uses one and sometimes two crews, with four or fiveemployees on each crew. Pricing has always been an important toolin gaining business but Bowlin realizes that there are ways toentice customers other than quoting the lowest price. For example,he provides careful cleanup of branches and leaves, takes outstumps below ground level and waits until a customer is completelysatisfied before taking payment. At the same time he realizes hisbid for tree removal jobs must cover his costs. In this industry,Bowlin faces intense price competition from operators with moresophisticated wood processing equipment, such as chip grinders.Therefore, he is always open to suggestions about pricingstrategy.
What pricing strategies could Bowlin adopt to further his longterm success in this market?
