One company that JLK has a close relationship with is Kennametal. JLK prices its products by how much that they bought them for from the other companies. The companies that JLK buy the products from have no real control over the price that JLK wants to sell them for, because once the products are bought, the other company has no say in what is done with them. Normally, JLK would mark the prices up to enable themselves to have a profit on the product that they sold. The only real theory for pricing in this industry is to sell the product for more than it was bought for.
Presentation is also an important part of price determination.
The company JLK is moving up in the business world. They are expanding and growing constantly. The future of JLK looks as if it is going to be very promising and good. Being a leader in the metalworking industry, this company helps the smaller companies by forming the type of partnership with them which was previously discussed in the paper. They are not looking to put anyone out of business, but they realize that by having other smaller companies with them they can grow and open new doors for the other companies.