Analysis of Two Pricing Models

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Essay #: 067571
Total text length is 6,704 characters (approximately 4.6 pages).

Excerpts from the Paper

The beginning:
Analysis of Two Pricing Models
This paper will summarize, than critically discuss the main points presented in the article Are You Getting Your Pricing Right or Leaving Money on the Table? The main points of this article discuss two pricing models, making a case for strategic, value based pricing in comparison to the cost-plus approach.
Summary of Main Points
The article presents a pricing strategy that will help companies increase profits, thereby increasing the value of the company. This is important since companies’ profits have been suffering during the recent economic downturn, while the cost of material inputs has been steadily growing, resulting in an increased cost of goods. Both of these factors put pressure on revenue and...
The end:
.....cumbent the chance to explain the reasoning behind strategic pricing. However, strategic pricing already in place, or new products being introduced into the market during a recession should be equally successful. A significant opportunity for implementing strategic, value based pricing exists where products or services are being sold by business-to-business sales representatives, as they are capable of adding significant value to the buying experience, provided that they are trained appropriately.
References
Are You Getting Your Pricing Right or Leaving Money on the Table? (2011, March 14). Industry Week. Retrieved from http://www.industryweek.com/articles/are_you_getting_your_pricing_right_or_leaving_money_on_the_table_24090.aspx?ShowAll=1