DEC
4

Pricing Strategy

 

 

Is your pricing strategy enabling you to extract  the warranted value from the customer?

Does you company have a pricing strategy,  are your prices based on a “reasonable” additon to your costs?   It is likely that you have already minimized your costs;  and merits of cost plus pricing is also  questionable, i.e. , which costs do you take into consideration, variable or fixed? 

Why  should you be affected or can you avoid  being  affected when an adverse economic cycle appears?  How might a cleverly designed pricing strategy help you?

Or are you following the steps of competition? What happens if they have miscalculated?

Warren Buffet said: “If you have to have a prayer session before raising prices,.. then you’ve got a terrible business”.

Likewise, Jeffrey Immelt of GE said: “When it comes to prices we pay, we study them, we map them, we work on them. But with prices we charge, we are too sloppy”.