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Strategic Pricing Methods
Pricing is the single most powerful lever for profitability. Learn how to identify the cost floor, the customer utility ceiling, and competitive reference points.
The 3 Pricing Methodologies
1. Cost-Plus Pricing: Setting price as a fixed markup over marginal cost.
2. Competitor-Based Pricing: Benchmarking price against existing alternatives.
3. Value-Based Pricing: Calculating the financial utility/value delivered to the customer to capture part of that created surplus.
Price Elasticity & Volume Tradeoffs
Analyze how price increases impact volume demand to maximize total net profits.
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