John Daly – Pricing for Profitability Activity-Based Pricing for Competitive Advantage
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John Daly – Pricing for Profitability Activity-Based Pricing for Competitive Advantage
Three things can happen when establishing a product price. A price set too high is a lost sale that could have been profitable at a lower price. A price set too low is rewarded with unprofitable work. Only when a price is set appropriately does a company make both a sale and a profit. Just as activity-based costing and activity-based management revolutionized the cost accounting world, activity-based pricing will bring a disciplined approach to developing pricing. Activity-based pricing examines the relationships between price, cost and sales volume and how this relationship effects profitability. Pricing for Profitability joins the disciplines of marketing, economics, business strategy, engineering and cost accounting to achieve maximum profitability.
Table of Contents
Acknowledgements.
Preface.
Pricing for Profitability.
Economics and Demand.
Competitive Strategy and Pricing.
Understanding Pricing Strategy.
Costs.
Activity-Based Costing.
Activity-Based Pricing.
Activity-Based Pricing Models.
Influence of Capacity Utilization.
Target Pricing.
Price Negotiations.
Conclusions and Summary.
Glossary.
Index.
Author Information
JOHN L. DALY is President of Daly Consulting and Executive Education Inc., which provides consulting in pricing strategy and profit im-provement. Executive Education Inc. produces continuing professional education seminars for financial managers. Mr. Daly is also a former manufacturing company CFO.
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