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 Marketing Ops Journal subscriber.
More Subscriber-Only Resources From Our Library
-
Avoiding the Pitfalls of Price Segmentation
In this expert interview, Barrett Thompson provides insight into the common problems and pitfalls to avoid when developing price segmentation models in B2B environments.
View This Interview -
How to Fight a Price War
In this on-demand webinar, learn strategies and tactics for preventing a price war, handling "dumb" competitors, de-escalating and avoiding provocative situations, and winning without actually fighting.
View This Webinar -
Preventing Bad Deals Before They Happen
After-the-fact corrective actions will do little to prevent the bad deals from happening again. Stop treating the symptoms. This diagnostic shows how to identify and correct the underlying root-causes of problems and issues.
View This Diagnostic -
Identifying Three Types of Customer Defection
In most B2B markets, your ability to stave-off defections and retain good customers is critical. This video guide explains how to identify the early signs of three costly types of customer defection and how to take action before it's too late.
View This Guide
