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.
This case study is just one of hundreds of educational resources you get access to as a PricingBrew Journal subscriber.
More Subscriber-Only Resources From Our Library
-
Getting Started in B2B Pricing
This 8-part course focuses on the critical concepts that B2B pricing professionals need to know. Whether you're trying to figure out where to begin or just want to ensure everyone on your team understands the fundamentals, this course can help.
View This Tutorial -
A Better Approach for Pricing Configured Products
In this Expert Interview, we talk to Jared Wiesel of Revenue Analytics about how to get beyond basic markups to improve and optimize the pricing of configured products.
View This Interview -
Competitive Insights for More Strategic Pricing
To avoid unnecessary pricing battles, you need to have a deep understanding of your competitors and their approaches to pricing. This guide shows you how to gain the strategic insights you need.
View This Guide -
Step-by-Step Competitive Analysis for Strategic Pricing
How to use competitive analysis to identify actionable opportunities to gain strategic advantage, expose competitive gaps, provide differentiation beyond price, and reduce the pressure to discount.
View This Tutorial
Come Join Our Next Webinar
Pricing Through a Trade War
Maintaining Pricing Discipline When Global Trade Tensions Disrupt Everything
