Reduce Pricing and Improve Profits with Contribution Pricing
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Overall profitability is obtained not by charging one stagnant rate on every project. Instead, profitability is a blending of rates charged to different customers in order to obtain as many orders as possible. Primary and secondary markets are served differently with higher prices for primary market printing and lower discounted pricing for secondary market work. When the work is produced is one important factor that can drive pricing. Of course, quality and on-time delivery must not be compromised regardless of the price charged for each project.
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- People:
- Carl L. Moore
- Deborah Snider
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