pricing-for-profitability-john-dalyPricing for Profitability

Activity-Based Pricing: The new paradigm for maximizing profitability

by John L. Daly

Pricing for Profitability introduces activity-based pricing, a new paradigm for improving profitability by reducing the occurrence of pricing mistakes and placing less emphasis on increasing revenue and more on improving profits. Activity-based pricing will help any company set prices that are attractive to buyers and profitable for the company. Pricing for Profitability teaches activity-based pricing to help you make better pricing decisions based on customer demand and a better understanding of what really causes profits. It will help you prevent under pricing and generate a healthier financial return.

Simply organized and non-technical, this in-depth treatment covers the the vital topics of activity-based pricing. A wealth of examples illustrate the points made in the text include activity-based pricing models used in real industries. Designed for everyone involved in the pricing process, Pricing for Profitability provides a comprehensive understanding of how to use pricing to gain a competitive advantage.

Chapters

  • Pricing for Profitability
  • Economics and Demand
  • Competitive Strategy and Pricing
  • Understanding Pricing Strategy
  • Costs
  • Activity-Based Costing
  • Activity-Based Pricing
  • Activity-Based Pricing Models
  • Influence of Capacity Utilization
  • Target Pricing
  • Price Negotiations
  • Conclusions and Summary

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From the Publisher:

Pricing for Profitability: Activity-Based Pricing for Competitive Advantage
John L. Daly
ISBN: 978-0-471-41535-0
Hardcover
288 pages
October 2001

Three things can happen when establishing a product price. A price set too high is a lost sale that could have been profitable at a lower price. A price set too low is rewarded with unprofitable work. Only when a price is set appropriately does a company make both a sale and a profit. Just as activity-based costing and activity-based management revolutionized the cost accounting world, activity-based pricing will bring a disciplined approach to developing pricing. Activity-based pricing examines the relationships between price, cost and sales volume and how this relationship effects profitability. Pricing for Profitability joins the disciplines of marketing, economics, business strategy, engineering and cost accounting to achieve maximum profitability.