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
-
The B2B Pricing Capability Self-Assessment
To help identify areas for improvement and help gauge the competitiveness of your company's strategic and tactical pricing capabilities, simply answer the 52 questions in this straightforward self-assessment as truthfully and objectively as possible.
View This Tool -
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 -
Avoiding Mistakes in Customer Profitability Management
For most B2B companies, it's important to maximize the value of every customer you get. But customer profitability management is full of land mines that need to be avoided.
View This Guide -
From Tactical to Strategic Pricing
Some teams are so mired in tactical grunt work and daily firefights that they never make progress on strategic pursuits. How have other pricing teams transitioned into more strategic functions? What steps did they take?
View This Webinar

Why Subscribe?
When you join your peers and become a PricingBrew Journal subscriber, you get immediate access to this case study as well as all of these other features:
- Training WebinarsDozens of on-demand webinars covering crucial pricing topics with new webinars every few weeks
- On-Demand LibraryA searchable library of hundreds of concise guides, tutorials, cases, assessments, and research reports
- Expert InterviewsLearn from others in pricing who’ve “Been There and Done That” through our Expert Interview Series
- Help DeskAsk our team of analysts for advice, insights, and perspectives on your specific pricing challenges