JOHN DALY – PRICING FOR PROFITABILITY ACTIVITY-BASED PRICING FOR COMPETITIVE ADVANTAGE

There are three things that can happen when establishing a product price. A lost sale can be profitable at a lower price if the price is set too high. A price set too low can lead to unprofitable work. When a price is set correctly, a company can make a profit. Similar to activity-based costing and activity-based management, activity-based pricing will bring a disciplined approach to developing pricing. The relationship between price, cost and sales volume is examined in activity-based pricing. Pricing for Profitability is part of the disciplines of marketing, economics, business strategy, engineering and cost accounting.

TABLE OF CONTENTS

Acknowledgements.

Preface.

Pricing for profit.

Economics and demand are related.

There is a competitive strategy and pricing.

Understanding Pricing Strategy

Costs.

Costing based on activity.

Pricing is based on activity.

Pricing models based on activity.

The influence of capacity utilization.

Target Pricing.

There are price negotiations.

There areConclusions and Summary.

Glossary.

Index.

AUTHOR INFORMATION

John L. Daily is the President of Executive Education Inc., which provides consulting in pricing strategy and profit. Financial managers get continuing professional education seminars from Executive Education Inc. He is a former CFO of a manufacturing company.

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