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
Three Types of Buyers That Don't Buy on Price
Research says that 60-70% of buyers aren't price buyers---lower your price for them and you just give margin away. Learn how to identify the types of buyers where additional discounts won't help you win the business.View This Diagnostic
Targeting Your Most Profitable Prospects
In this tutorial, learn a six-step strategic process for increasing your odds of success in the marketplace by understanding which prospects you should target...and which ones you should avoid.View This Tutorial
Driving Sales Effectiveness with Strategic CRM
Are you really getting everything you should from your CRM system? Do you even know what's possible? In this four-part training session replay, learn what leading sales operations are doing differently to drive significant sales results, with far less resistance from the field.View This Webinar
How to Think Like a Masterful Salesperson
In this tutorial, learn about creating more effective marketing programs and materials by answering the seven questions that all great salespeople intuitively ask and answer, as a matter of course.View This Tutorial
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