Corey smiled to himself after hanging up the phone. Hugh, one of ...

[jessicacav]

Corey smiled to himself after hanging up the phone. Hugh, one of Corey's current customers, just called to inquire about the Avalanche compressors that Corey sold to Hugh on a regular basis. Because business had been good, Hugh was running short on component partsincluding compressorsand had called to check on their availability. Hugh was anxious not to disappoint his customers, so he was desperate to get a shipment of compressors ASAP.
 
  Corey smiled, knowing that under the circumstances, he could probably get away with raising the prices of the Avalanche compressors for Hugh's upcoming shipmentthus making Corey's boss happy, making Corey's firm happy, and making Corey himself look good.
 
  On the other hand, Corey remembered what his marketing principles professor and personal selling professor had taught him about relationship selling and the advantage of sacrificing short-term profits for long-term relationships. Darn Now what was he supposed to do?
  Should Corey take advantage of Hugh's situation and raise the prices?

Question 2

Ruth, the southern regional sales representative for Digerby Shoe Corporation, was driving to the office of Ed Brown, the buyer for one of her largest accounts. Ruth knew that Ed would want to discuss sales trends today, and the subject made Ruth nervous. Ed had 10,000 pairs of the Rocket style on order, scheduled for delivery over the next six months. Sales of this style were falling off sharply on the east and west coasts, and Ruth recognized that it would not be long before this sales trend hit Ed's market.
 
  Ruth was faced with a dilemma. If she told Ed that sales were falling off on the coasts, he most likely would want to reduce or even cancel his order, and she would not earn her commission moneymoney that she had been counting on to put a down payment on a new house. On the other hand, if Ruth did not tell Ed, he might suffer great losses. Moreover, if Ed discovered the news of the sales trend on his own, he might never trust Ruth again.
 
  Ruth pulled into the parking lot of Ed's firm and walked into the reception area. Ed, who had come to greet her, asked, So how is the Rocket selling these days?
 
  Ruth, struggling for words, responded . . .
 
  Does she have any other options?

[Brenm]

Answer to Question 1

Perhaps an easier way to look at this question is to put yourself in the customer's shoes. How do you feel when the local hardware store raises its prices on snow shovels during a major snowstorm? While you reluctantly pay the increased price because you need the product, chances are you also remember the incident and are less likely to patronize that store when the crisis has ended and there is an alternative retailer. A similar situation could happen with Hugh. While he may pay the higher price now because he needs the parts, he may very well come to resent the fact that Corey's company was opportunistic and bad feelings may mar the relationship in the future.

Answer to Question 2

While it appears that the Rocket may not be selling well, are there other products that Ruth could promote? Perhaps they may not be quite as profitable as the Rocket or be as over-stocked, but another product would still supplement Ruth's sales commission and sell well keeping the customer happy.