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
The Revenue Marketing Center of Excellence
With revenue marketing gaining popularity, many are wondering what kinds of organizational structures will best support the transformation. In this interview, Debbie Qaqish of the Pedowitz Group explains why the Center of Excellence model makes so much sense for revenue marketing.View This Interview
The Marketing Research Interview Guide
Categories and sample questions for developing effective marketing research interview guides. A robust and well-rounded interview guide can be constructed by just developing one question in each category.View This Tool
How Strict Pricing Enforcement Killed a Product
Strict enforcement of pricing policies can seem like a great idea. But this comical case study sheds some light on the perils of enforcing policies that are lacking (and somewhat ridiculous).View This Case Study
Building Data-Driven Marketing Operations
Building a data-driven marketing operation where anecdotes and opinions have ruled for years is no easy task. But with the right approaches, you can transform your marketing processes and culture in less time...and with less conflict...than you might imagine.View This Webinar
When you join your peers and become a Marketing Ops 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 Marketing Ops 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 Marketing Ops 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 Marketing Ops challenges