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Pricing for profitability: Give your competitors the “dog” jobs and keep the “gravy” for yourself
Author(s) -
Daly John L.
Publication year - 2003
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.10209
Subject(s) - profitability index , competitor analysis , profit (economics) , economics , business , microeconomics , commerce , monetary economics , finance , marketing
With apologies to Woody Hayes, three things can happen when establishing prices, and two of them are bad: Youcan overprice and lose a sale that would have been profitable at a lower price, or you can underprice and makean unprofitable sale. Only the third outcome is favorable: Price appropriately and make the sale as well as aprofit. © 2003 Wiley Periodicals, Inc.