Pupadise, Inc.: Unleashing a Business
(7 pages of text)
In late 2018, the founder and owner of Pupadise, Inc., a pet care business in Canada, was nearing her graduation from university and needed to decide what to do with the business she had built in her undergraduate years. Pupadise cared for clients’ pets when the pet owners could not; its services primarily consisted of live-in and drop-in pet care. The owner was considering selling the business, but was concerned that the sale price would be low because her business had no traditional assets. Inspired by a guest speaker in her pricing class, she realized that her client list of 300 pet owners had value, but wondered how to price it. She had a meeting scheduled with a prospective buyer and wanted to prepare. Should she sell her business, and if so, for how much?
This case is intended for upper-year undergraduate-level and graduate-level courses focused on marketing, value, and price. After working through the case and assignment questions, students will be able to
- value a service business, specifically when value is based on clients rather than assets;
- apply the value-based approach to pricing; and
- understand how to enter into a negotiation.
Canada, Small, 2018
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