Raising Prices: Simple and Effective


Because of the proprietary (protected by substantial intellectual property) nature of our products, we have been able to raise prices successfully on several occasions. Having a business model that concentrates on innovative products protected by patents and trademarks allows for substantially more pricing flexibility than dealing in commodity categories which are highly competitive. Ideally, pricing should be based on the utility of the product rather than tightly tied to the cost-of-goods sold. In this regard, one can find numerous examples of products that, when first introduced, generated excellent revenues and margins; however, without appropriate protection, as competitors introduced similar products, pricing and margins were compromised. Ultimately, the commodity nature of these products forced pricing to be tied directly to the cost of manufacturing and marketing with little profitability remaining.




Inside the Minds Stuff - Inside the Minds. Managing for Profit. Leading CEOs on Key Strategies for Increasing Profits Exponentially in Any Economy
Inside the Minds Stuff - Inside the Minds. Managing for Profit. Leading CEOs on Key Strategies for Increasing Profits Exponentially in Any Economy
ISBN: N/A
EAN: N/A
Year: 2004
Pages: 130

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