12 The Sales Plan: Pricing
In determining the price for their product/service, many companies just add up all their costs and arbitrarily add a certain amount for profit—and that becomes their selling price. The question is: Is this price giving them the maximum marginal income?
Apple, Inc. is doing very well right now financially. Of course, their iPhone is a big winner. But their Mac computer only has a 7.6 percent market share in the United States as of the second quarter of 2009, and only 3.36 percent worldwide. Dell has a 26.3 percent share and Hewlett-Packard has a 26 percent share. I believe many people would agree that the Mac has better graphics and an operating system superior to that of PCs, such as Dell and HP, which run Microsoft ...
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