Price is a key element of the marketing strategy. It does not require a significant investment and resources, and, perhaps, the most accessible lever for profitability management. Even minor price fluctuations can have a significant impact on both revenue and profitability. Thus, the absence of careful planning in pricing is a wasted opportunity. In the background, we make the case for exact pricing to improve profitability. Because consumers differ in their preferences, motivation and propensity to spend, they give different degrees of attention with respect to the price of their purchase decisions. We believe that pricing is a creative exercise in mathematics and behavioral economics, and companies need to focus on profit. We also provide a series of recommendations for the creation of effective basic price, and then modify them to improve profitability. Finally, monitoring of prices at the transaction level will reduce the leakage of profits and further add to the bottom line. "Hide
on Chiranjeev Kohli, Rajneesh Suri Source: Business Horizons 11 pages. Publication Date: November 15, 2011. Prod. #: BH456-PDF-ENG
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