Reduce Pricing and Improve Profits with Contribution Pricing
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No work versus reduced pricing to get work. That conundrum faces printers as no brighter days appear to be on the horizon for the economy, at least not in the foreseeable future.
A printer, however, can price a job at a discount and still increase profitability, according to Deborah Snider, senior vice president of e-LYNXX Corporation. "That may sound too good to be true, but it actually is achievable when a concept called contribution pricing is applied", she added. The name contribution pricing is derived from the fact that any income -- above out-of-pocket costs -- contributes to overhead and the excess contributes to the bottom line.
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- People:
- Carl L. Moore
- Deborah Snider
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