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Smitty's Window Company Case Study Smitty's Window Company is a small firm in the Midwest that installs new windows in existing homes around the area.
Smitty's Window Company Case Study Smitty's Window Company is a small firm in the Midwest that installs new windows in existing homes around the area. Due to rising production costs for the glass and fabricated materials comprising the windows, as well as the need to pay installers a higher wage, Smitty has been forced to raise the prices of his final window installation from $325 in per window in 2020 to $650 per window in 2023. Smitty was hesitant to raise prices by 100% over the years, but he had no choice given his higher production costs. He was concerned that his customers would balk at the higher prices and move to other suppliers...but they too are facing similar rises in production costs. Smitty has provided the following sales information for the four-year period: 2020: 12,000 windows sold at an average price of $325 2021: 12,200 windows sold at an average price of $400 2022: 12,400 windows sold at an average price of $525 2023: 13,000 windows sold at an average price of $650
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