Describe why there is a difference between the WTP and real Price in CMI

case?

The stark difference in the WTP and the real price is observed due to the
following reasons:

1. CMI pads drove 33% faster than the conventional pads and the metal set
life was 10 times greater than the conventional.

2. Also , the piles driven per set of pads is 300 as compared to the
competitors 15 and the number of pads per set is 6 rather than 24 with the
number of sets required being 1 along with a single set change as
compared to the 20 changes observed in the process.

3. As per the above stated factors a major cost saving is achieved by
implementing CMI pads which have a greater efficiency and cost aspect
as well.

4. Manhours for changing the pad sets is greatly reduced since CMI pads
take only 4 mins as compared to 20 mins taken earlier.


Its the increased efficiency and expertise gained by the operators provide a
competitive advantage and therefore the WTP is higher than Price.