There's no Competitors in this product or service, even Destin lifted the value by 12.5%, but that didn't bring any impact on the demand from customers with the product. This product was providing them additional revenue than one other solutions and had more than the conventional gross margin of 35%.
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The objective of the Assembly was to discuss how you can increase the gross margin in the pumps. Reducing the cost was resulting in lower gross margins.
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If it carries on using the similar standard costing strategy then in long run it would face losses as whenever a competitor would be reducing charges As well as in stress, it would need to accomplish exactly the same.
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