Pruitt sells embroidery machines used to embroider logos, names, and other designs on shirts, caps, umbrellas, etc., to people in the personalization business. The machines range in price from $39,000 to $75,000. He wants to stimulate business among some of his customers who cannot afford to buy his embroidery machines, but whose businesses would benefit from the use of one. Which of the following actions is most appropriate in this example?

Question

Quizplus · Accepted Answer

Developing leasing options for business customers would enable those who cannot afford to buy the machines to still use them in their businesses. This would stimulate business among those who otherwise would not be able to purchase the machines outright, while also providing Pruitt with a new revenue stream through leasing fees. Full and complete reciprocity and managing derived demand are not relevant to this situation, and a straight-rebuy ordering system is not suitable since customers may not have the funds to make a direct purchase.

Pruitt Sells Embroidery Machines Used to Embroider Logos, Names, and Other