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So... can you tell me what you thought? Should they move forward with it? If so, at what price?
I'm thinking that they should, provided they segment the market such that it doesn't get used by shipping managers (the primary users of the priority one service) and they should price at a premium, since it has addressee delivery, ideally at around $13 or $14. Plus, since its compact, it helps them better utilize their planes (the whole "cube out" before you "gross out" thing).
I don't think it matters if the shipping guys use it -- I don't remember it being an issue. But you are right -- they need to target it at the exec level. And we know this group is not price sensitive. If memory serves, you can actually run a price sensitivity analysis with the info you have.
And they should totally go forward.
This was our first case (or maybe second) for marketing, so we were just getting started. Run a break-even analysis, and also calculate the number that can go in their average plane.