1-2008-Intro-to-Pricing

1-2008-Intro-to-Pricing - Introduction to Pricing 1 2 3...

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1 Introduction to Pricing
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4 Nickels and Dimes Matter! CEO of a billion dollar company: “Get me an extra nickel or a dime --- every day. Find a way to convince the customer that we are worth a little extra. Pick up those extra nickels and dimes all around the world --- every day --- and they drop right into our bottom line --- and pretty soon --- we are talking big improvements to our net income.” (quote paraphrased from Robert J. Dolan and Hermann Simon, Power Pricing , Free Press, 1996)
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5 Pricing Right   Fastest and most effective way to increase profits Consider the average income statement of an S&P 1500 company: a price rise of 1 percent , if volumes remained stable, would generate an 8 percent increase in operating profits
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6 The Power of a 1% Price Increase for Average  S&P 1500 Company (Assumes that  all else , especially unit sales does not change.)
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7 Pricing Right   Fastest and most effective way to increase profits  for an AVERAGE S&P 1500 Company 
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This note was uploaded on 05/12/2010 for the course MAR 5805 taught by Professor Sawyer during the Fall '08 term at University of Florida.

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1-2008-Intro-to-Pricing - Introduction to Pricing 1 2 3...

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