Pricer’s Points: Does List Price Matter? | Michael Calogridis

1. List price allows for the setting of net price that can be reflective of any discounts and or promotions, thereby incents increased purchase activity.

2. Having a list price (as your starting point) also allows you to differentiate (on net price) highly valued customers from those who do not purchase. Granted, this fits into a b2b environment more than retail or consumer but the last 2 overuse (again, my opinion) the promotion and discount card and frequently do not realize how much value they in fact give away. So from an internal perspective, it allow the merchant team to see fully the discount effect of their proposed activity.

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Does List Price Matter? | Michael Calogridis, Price and Analytics Expert | Pulse | LinkedIn.