Electronics Automation Inc.: Planning, Negotiating and Closing the Sale. As the sales manager of a recently set up Sales Division of Electronics Automation Inc. (EA) in Toronto. You were working on preparing a sales proposal including a bid to sell an EA's 1000X digital computer to Koenig AG, Germany's largest chemical company based in Canada. Among other marketing & servicing aspects, if you were to follow EA's standard pricing policy of adding a 33 markup to factory costs and then include transportation & installation costs in it, the bid would amount to $272,800. This bid amount you feared would not be low enough to win the contract. Koenig had invited four other manufacturers to submit sales proposals & bids for the contract. A reliable trade source in your opinion indicated that at least one of these competitors was planning to name a price in the neighborhood of $218,000. This would make EA's normal price of $272,800 higher by $54,800. Since Koenig was EA's most important German customer, you were particularly concerned about this contract and were wondering what strategy to employ to make your sales proposal attractive enough to win the sale.

6. What would be your winning bid amount?

7. What could be your Five specific reasons to support the bid amount?