CHAPTER 6
Pricing
Importance of Pricing
Pricing is a business-critical decision and one where for many companies there is considerable scope for improving economic performance.
Once a company has set its pricing objectives, it has to figure out how to achieve them. These decisions form part of the company’s pricing strategy.
Although often overlooked, pricing is the most important part of value engineering. This is because price is the only element of the marketing mix that directly produces revenue; all the other elements produce cost.
| Price too high | Price too low |
| Drive customer away | Limited profit margin |
| Negative effect on how customer perceives the product quality |
Small changes in price can have significant effects on volume, ...
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