The Pricing Company

Improve profitability through better pricing!

The Pricing Company - money

The objective of every profit-based organization is optimal financial result.
The profit formula (profit = price x volume – cost) shows us that price is a multiplicative factor.

To resist increased margin pressure, most companies have already carried through cost reductions and extra sales and marketing efforts to increase volume. Both factors require huge investments in time and money to achieve the neccessary result. A 1% increase in price has a much bigger impact on profitability, than 1% increase of volume or 1% decrease of costs. Knowing this, price is the important profit determinant. So it would not be logical to focus just on the x-factor volume in combination with costs. Unfortunately, due to a lack of systematic and disciplined analysis, price is still the area where profits are most often left on the table.

Nevertheless, pricing is not simply about raising your prices.
It is about building the foundation for profitable growth!