September 2007
Intermediate to advanced
288 pages
5h 59m
English
book
Six Sigma Pricing: Improving Pricing Operations to Increase Profits
by ManMohan S. Sodhi, Navdeep S. Sodhi
Content preview from Six Sigma Pricing: Improving Pricing Operations to Increase Profits
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Preface
It is remarkable how much the pricing of a company's products and services affects the profitability of the company in either direction: High (realized) prices can mean high total profits, and low prices can mean low total profits. From an Economics 101 perspective, there exists a perfect price at which profits are maximized, and any price lower than that point hurts not only profits but potentially revenues as well. However, in a business-to-business (B2B) selling context, there are two challenges in achieving such a price. These apply to the list price and to the price realized in individual transactions, respectively.
First, for a company with thousands, or even tens of thousands of products, it is inconceivable that its list prices ...
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