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.
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