Estimating stand-alone selling prices: adjusted market assessment approach
Response to the following problem:
O'Hara Associates sells golf clubs and, with each sale of a full set of clubs, provides complementary club-fitting services. A full set of clubs with the fitting services sells for $1,500. Similar club-fitting services are offered by other vendors for $110, and O'Hara generally charges approximately 10% more than do other vendors for similar services. Estimate the stand-alone selling price of the club-fitting services using the adjusted market assessment approach.