Pricing Fitness for Enterprise Longevity – How to Grow a Business & Stock Investment Mind
Pricing is the most decisive weapon in a management armory. Products and services under price regulations are exceptions, but this is now limited in the post-socialist world. High demand elasticity to price, and competitive substitution, are major deterrents to the exercise of management prerogative to raising selling rates. These risks are often more imagined than real. However, it is difficult to fight fears that loyal customers may be lost because of new sticker prices. It is easier to balance contradictory profit margin and brand share objectives through the following three functional strategies: 1. Keep your cost of funds lower than…