Help
CEOExpress Home | News Center | Contact Us
  McKinsey Quarterly

 
Industries
Automotive
Energy, Resources, Materials
Financial Services
Food & Agriculture
Health Care
High Tech
Media & Entertainment
Nonprofit
Public Sector
Retail
Telecommunications
Transportation
Function
Corporate Finance
Economic Studies
Governance
Information Technology
Marketing
Operations
Organization
Strategy
Search Articles:

All of these words Any of these words
Summary
Please note: The McKinsey Quarterly has agreed to a special arrangement for CEOExpress members that allows member access to their articles. Articles must be clicked on directly through the links below to gain access to this group of articles.
Bringing Discipline to Pricing
Many otherwise rigorously run companies are disconcertingly lax about pricing. Although a 1 percent improvement in price yields bigger gains in operating profit than a similar improvement in variable costs, fixed costs, or volumes—almost 8 percent on average across the S&P 1000—companies often base prices on the anecdotal observations of a few vocal salespeople or product managers. A lot of companies therefore end up with pricing policies that leave money on the table by failing to differentiate markets on the basis of their competitive dynamics and supply-and-demand economics. But there is a straightforward way to gauge supply and demand in individual markets. Companies can use it to decide whether their prices are too low or too high and, if so, by how much.
  


Articles provided by The McKinsey Quarterly
© 1992-2003 McKinsey & Company, Inc

 

Copyright ©1999-2021 CEOExpress Company LLC.