Tag: cost-plus pricing

When Cost-Plus Pricing Is a Good Idea | Harvard Business Review

When Cost-Plus Pricing Is a Good Idea | Harvard Business Review

The Strategic and Tactical Benefits of Cost-Plus Pricing Despite these limitations, there are sometimes strategic and tactical reasons to use cost-plus pricing. When implemented with forethought and prudence, cost-plus pricing can lead to powerful differentiation, greater customer trust, reduced risk of price wars, and steady, predictable profits for the company. No pricing method is easier to communicate […]

How to Use Customer Groups in Your Pricing Strategy | Mageworx

How to Use Customer Groups in Your Pricing Strategy | Mageworx

‘Price doesn’t matter!’ You can hear merchants saying this every now and then. Not that I disagree, but price does make or break a sale. Despite all the behavioral economics studies & pricing psychology proving otherwise, this is just common sense. Recent data by Radial proves that 60% of shoppers find purchasing items at the […]

The World’s Worst Pricing Model | Forbes

The World’s Worst Pricing Model | Forbes

The world’s worst pricing model is also one of the world’s most popular. It is cost-plus. I’m talking about anything where the price is based on a mark-up applied to costs. Notice that this includes all professional service providers who charge hourly or daily rates! Cost-plus pricing has many apparent advantages. It is simple to use, […]

Rent-A-Center (RCII) Strategic Plans Bode Well for the Stock | Zacks.com

Rent-A-Center (RCII) Strategic Plans Bode Well for the Stock | Zacks.com

Management has undertaken initiatives to strengthen the performance of its Core U.S. segment. The company expects to reap benefits from its Flexible Labor and Sourcing & Distribution endeavors. Moreover, management has been gradually making a shift in its pricing strategy at the Core U.S. unit – from a cost-based pricing technique to a data-driven, market-responsive […]

You’re pricing your SaaS product all wrong | VentureBeat

You’re pricing your SaaS product all wrong | VentureBeat

Over the past couple of years, I’ve polled dozens of startup executives about how they approach pricing and monetization for their SaaS products. One of the questions I ask is, “How did you come up with your pricing?” Given how data-driven the executives tend to be about other aspects of their businesses, I initially expected […]

How your pricing policy affects your sales | Intelligence Node

How your pricing policy affects your sales | Intelligence Node

Price optimization is one of the key factors in every business operation as it can raise prices whilst improving sales volumes at the same time. Savvy pricing managers will implement it and focus on building their business to cater to the most profitable customer. However, that sounds easier in theory than it is in practice […]

Different Pricing Strategies in Business Marketing You Need to Know | Money Crashers

Different Pricing Strategies in Business Marketing You Need to Know | Money Crashers

A great business idea alone doesn’t guarantee success. To sell your product effectively, you’ve got to price it well. That means fully understanding the costs you incur to run your business, as well as the going market rate for the product or service you’re selling. There are a variety of pricing models to choose from […]

Pricer’s Points: Is your company going to commit pricing suicide? | Pepe Paez

Pricer’s Points: Is your company going to commit pricing suicide? | Pepe Paez

While we all understand what a price represents few realize the impact of prices in an organization. But pricing is not an occult science or the area of study only for post-graduates and C-level executives. Pricing is everywhere and sometimes it works against the very nature of understanding how to price your products. Why? Because […]

Pricing Is A Community Event | Michael Diamond

Pricing Is A Community Event | Michael Diamond

It takes a village to raise a child, as they say. But the same might be said about pricing – although I admit that the phrase “it takes a village to establish a price” is a bit less lyrical than the child-raising version. Nevertheless, pricing is a community event, which flies in the face of […]

5 Profound Pricing Strategies Designed to Profit | Business2Community

5 Profound Pricing Strategies Designed to Profit | Business2Community

Price is something that greatly influences how likely someone is to purchase your products and services. Even the best items may be passed by customers in exchange for something that offers comparable functionality without as hefty of a price tag. The trick is discovering what that perfect price is. You don’t want to sell your […]