Superstar Solar
The company was established to find an energy source to ease the burden on the energy industry and offer cleaner power to the world. Our goal is to shape a more environmentally conscious future for generations by creating energy while eliminating pollution from fossil fuels. Our company mission revolves around “developing eco energy for future generations ” and we anticipate enabling electricity access to numerous countries that currently lack the necessary infrastructure within the next five years. Superstar Solar, Inc. has designed portable solar power systems to assist the government in generating electricity for domestic needs and international relief efforts. Superstar Solar is confident in its ability to aid developing nations and transform them from third-world status or countries with antiquated power infrastructures. Our company is led by CEO Jacob May, heads of production under Bridgham, government contracts under Duch, and accounting and finance under Sydney. The US State and Energy Departments are our primary market.
SolarCal
SolarCal was established to meet the demand for solar farms and the United States Government for lightweight solar panels. SolarCal’s stated goal is to create a lightweight solar panel system that satisfies requirements set forth by the EPA and the General Regulations for Solar Power Systems (Paquin et al., 2015). For the past two to three years, no one has been able to compete with SolarCal’s lightweight solar power products. Hence SolarCal has dominated the industry. SolarCal designs portable solar solutions for the United States government and utility-scale solar installations. Critical members of SolarCal’s staff include Sally, an intern; Dominic, the company’s CEO; Luke, the director of productions; Jake, manager of accounting/finance; and Melissa, director of government contracts. SolarCal’s ideal customers are the EPA and General Solar Power Systems.
SolarCal can utilize three types of pricing analysis methods to forecast the prices of its products and services when contracting with the government. The first pricing analysis is a Comparison of Proposed Prices. This approach analyzes SolarCal’s government contract rates for its goods and services. The corporation can use previous pricing data to predict future prices. It may also compare its suggested prices to industry competitors to guarantee competitiveness. The second pricing analysis is Market Price Comparison. SolarCal may utilize this strategy to examine market pricing for solar power grid goods and services. The third pricing analysis is Cost-Plus Pricing. This strategy involves evaluating the overall production cost, including direct and indirect costs, then adding a markup to determine the selling price using cost-plus pricing (Alex, 2017). This approach guarantees that the firm pays its expenditures and produces a healthy profit.
The Comparison of Market Prices approach is the one most suited for use with SolarCal among these other possibilities. Analyzing market dynamics and rival pricing helps SolarCal promote its products competitively. If their pricing diverges significantly from market averages, it might hurt government contracts and customer interest. Secondly, the solar power grid business is subject to fluctuations in demand and supply due to shifting technological developments. Therefore, SolarCal can adapt its pricing approach quickly and effectively by comparing market prices.
Superstar Solar may use three pricing analysis methodologies to estimate government contract prices. The first pricing analysis is the Cost-Benefit Analysis. Superstar Solar can provide a complete cost-benefit analysis for its products and services. This method will help the company determine the best pricing to reflect Superstar Solar’s worth (Alkhatib et al., 2020). The second pricing analysis is value-based pricing. With this strategy, the business may compare its solar power networks to its rivals, identify their distinct advantages, and set prices appropriately. The third pricing analysis is target costing. Target costing allows Superstar Solar to select a product’s selling price and calculate the maximum manufacturing cost. This will keep the company cost-efficient while reaching its profit margin and pricing competitiveness.
In my opinion, Superstar Solar, Inc. would benefit most from the “Value-Based Pricing” strategy among these other alternatives. As an upcoming company, Superstar Solar must separate itself from significant industries such as SolarCal and present its products as premium, high-quality alternatives. Value-based pricing lets the firm showcase its unique benefits and justify higher charges by offering customers more value. Secondly, Superstar Solar may increase its profit margins by keeping a more significant portion of the value it generates in the market through its cutting-edge solar technology, thereby funding future R&D efforts that will help the company remain efficient and competitive.
References
Alex, R. M. (2017). A Study On Fixation of Pricing for Products and Services Rendered by Paradise Gardens Beach Resort & Ayurveda, Kovalam. International Journal in Management & Social Science, 5(7), 181-217.
Alkhatib, N. S., Ramos, K., Erstad, B., Slack, M., McBride, A., Bhattacharjee, S., & Abraham, I. (2020). Pricing methods in outcome-based contracting: δ1: cost-effectiveness analysis and cost-utility analysis-based pricing. Journal of medical economics, 23(11), 1215- 1222.
Paquin, C., Blarel, J., & Joshi, S. (2015). Solar Decathlon 2015, Solar Cal Poly; Solar Cal Poly Project Engineers.
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