About Best Practice Pricing

In today's economic environment companies must make every possible effort to retain and if at all possible, increase, their profits. Instituting good pricing practices is one of the most powerful ways to combat the rising costs of energy, transport raw materials, just to name a few. Yet, only a small number of companies seem to care at all about best practice pricing, resorting to erroneous methods they are familiar with, like "gut feel", "market price" or "cost plus". Why? Well, because cost cutting has been the mantra of business for the last 30 years or more, and most companies don't really know what best practice pricing means.

Thursday, August 28, 2008

Update on Dell and Apple - Drop your margin 3% and lose $14b!

I thought it is appropriate with a update on my Dell and Apple story from July 22. See below.

Dell on Thursday reported a fiscal second-quarter profit of $616 million, or 31 cents a share, on $16.43 billion in revenue. During the same period a year ago, Dell earned 33 cents a share on revenue of $14.77 billion. The result was an immediate -1.8% drop in share price.

Per Sjofors
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