How to Crater a Market with Cost-Plus Pricing
Learn How One Company's Lack of Strategic Pricing Capability Reduced the Value of an Entire Market by Over $1 Billion
Is cost-plus really just a weak approach where stronger approaches are available? Or can it be much more insidious and destructive than that? For one large manufacturer, cost-plus pricing was tantamount to malpractice. In this case study, you will learn:
- Why product and manufacturing innovations so often fail to improve financial performance and competitive position.
- How simplistic cost-based pricing approaches can spark pricing wars, destroy market value, and incite competitors.
- How absurd pricing decisions can be rationalized as "sound pricing strategy" in the interest of gaining market share.
- How one company reduced the value of an entire market by over $1 billion...and gained nothing for their efforts.
This case study is just one of hundreds of educational resources you get access to as a PricingBrew Journal subscriber.
More Subscriber-Only Resources From Our Library
-
A Better Approach for Pricing Configured Products
In this Expert Interview, we talk to Jared Wiesel of Revenue Analytics about how to get beyond basic markups to improve and optimize the pricing of configured products.
View This Interview -
Pricing Psychology in B2B
While businesses do indeed have systems and policies to ensure greater rationality and consideration in purchasing, certain psychological factors can still have tremendous influence over price perceptions.
View This Webinar -
Tweaking Your Sales Strategy to Improve Prices
A well thought-out strategy can reduce pricing pressure and increase deal velocity. This guide explains how relatively small adjustments to your sales strategy in a few high-leverage areas can combine and compound to produce dramatic results.
View This Guide -
Closing Costly Margin Leaks
In this recorded webinar session, we explore common margin leaks that can appear when the economy is roiling, your business is under intense pressure, and everyone has been scrambling to deal with the chaos.
View This Webinar
Come Join Our Next Webinar
Making Sense of AI for B2B Pricing
Cutting Through the Hype to Deliver Tangible Pricing Performance Gains
