Do you take a strategic approach to pricing your products and services? Were pricing decisions you’ve made in the past a reaction to a competitor’s pricing? Or were these price levels carefully planned to take advantage of a strategic opportunity in the marketplace? Did you set prices based on customer value or on manufacturing cost?
Did you arrive at those decisions by analyzing only the immediate impact on profitability, or did you also consider the reactions of customers and competitors to a price change?
Were the pricing decisions in alignment with your marketing strategies? Few companies are proactive about taking a strategic, more profitable approach to price setting.