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
-
Identifying Your Value Along Five Dimensions
You can't just hope prospects will pick-up on the compelling reasons to buy from you. In this guide, you'll learn the five dimensions of value that matter and over 50 potential value-drivers that can influence buying decisions.
View This Guide -
Using a Cost-Plus Mindset to Your Advantage
In this case study, learn how one consultant got (very) creative in order to solve a pricing problem in an highly dysfunctional organization.
View This Case Study -
The Price Segmentation Self-Assessment
Simply answer the questions in this self-assessment (objectively) to gauge the likely quality, accuracy, and efficacy of your price segmentation model. You can assess overall quality, as well as pinpoint specific opportunities for improvement.
View This Tool -
Suffering from a Costly Case of Sticker Shock
In B2B environments where discounting is habitual, it's easy to think that your list prices don't really matter all that much. But before you conclude that list prices are inconsequential in your business, consider this case of a B2B reseller who just couldn't see what they were missing.
View This Case Study
