Pricing for Profitability: Activity-Based Pricing for Competitive Advantage
Pricing for Profitability: Activity-Based Pricing for Competitive Advantage Three things can happen when establishing a product price. A price set too low is rewarded with unprofitable work. A price…
Specifikacia Pricing for Profitability: Activity-Based Pricing for Competitive Advantage
Pricing for Profitability: Activity-Based Pricing for Competitive Advantage
Three things can happen when establishing a product price. A price set too low is rewarded with unprofitable work. A price set too high is a lost sale that could have been profitable at a lower price.
Just as activity-based costing and activity-based management revolutionized the cost accounting world, activity-based pricing will bring a disciplined approach to developing pricing. Only when a price is set appropriately does a company make both a sale and a profit. Activity-based pricing examines the relationships between price, cost and sales volume and how this relationship effects profitability.
Pricing for Profitability joins the disciplines of marketing, economics, business strategy, engineering and cost accounting to achieve maximum profitability.