Pang corporation is one of the larger chemical companies in the United States -
making a wide line of organic and inorganic chemicals, plastic, and metals. Technical research has played a vital role in the company's growth
Recently,pang's research laboratories developed a new product in the antifreeze line - Save - 10.
Much research was devoted to the technical phase,
involving various experiments concerned
with the quality of the new product.
The antifreeze commonly used now is ethylene glycol.
If it
leaks
into the
crankcase
oil,
it forms a thick, pasty sludge
that can cause bearing damage, cylinder scoring, or a dozen other costly and time-consuming troubles for both the operator and owner of heavy-duty equipment.
Pang corporation believed the Save - 10 would be very valuable to the owners of heavy-duty diesel and gasoline trucks - as well as other heavy-equipment owners. Chemically, Save 10 uses a propane product - instead of the conventional glycol and alcohol products. It cannot prevent leakage, but if it does get into the crankcase, it will not cause any problems.
At first, Pang thought it had two attractive markets for this product:(1) the manufacturers of heavy-duty equipment, and (2) the users of heavy-duty equipment. Pang sales reps have made numerous calls and so far neither type of customer has been very interested. The manufacturers are reluctant to show interest in the product until it has been proven in actual use. The buyers for construction companies and other firms using heavy-duty equipment have also been hesitant. Some said the price was far too high for the advantages offered. Others didn't understand what was wrong with the present antifreeze - and refused to talk any more about paying extra for "just another" antifreeze.
The price of Save - 10 is $ 16 per gallon - more than twice the price of regular antifreeze. The higher price is due to higher costs in producing the product and an increment for making a better type of antifreeze.