The fundamental objective in pricing for all companies is to sell their products at prices that most accurately reflect the value delivered to the customer. However, we know from experience that few companies have mastered this science.
Those that manage it command significantly healthier and more sustainable margins than those companies that struggle with pricing. Xi Bing Ang says the challenges that arise are actually related to the nature of a company’s marginal product cost. There are essentially two worlds. In the first are companies that sell products that have marginal costs…
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