Reduce Pricing and Improve Profits with Contribution Pricing
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Printers that succeed with the GPO do so by applying strategically contribution pricing. As a secondary market, the GPO can be turned on and off to accommodate immediate production needs, fill otherwise unused production capacity and generate revenue.
This is very different from primary markets where it is important to be steady with pricing for one customer or even within one market, as it can be dangerous to the customer relationship to offer a print project for 50 percent less than that charged for a similar job. Customers expect printers to charge consistently at a level that the customer expects.
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- People:
- Carl L. Moore
- Deborah Snider
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