Friday, July 29, 2005

Profit Parabolas - A Boston Consulting Group article

I was trawling around looking for good information on pricing, and I chanced upon this article. It echoes work I did ages back, but it takes it a little further. It's a nice read, and might give you ideas. Here it is: Profit Parabolas: Bringing Science to the Art of Pricing

I think that a crucial bottleneck in their approach is that you need to have a hell of a lot of data about your competitor's pricing and cost structures. As we see, often enough the net price paid by a customer is 30 - 50% lower than the published list prices at any company.

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