Reduce Pricing and Improve Profits with Contribution Pricing
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"When contribution pricing is applied consistently and strategically, a printer can improve its bottom line profitability from an industry average of about 2 percent to an impressive 17 percent or more by filling otherwise unused capacity, even when these additional fill projects are sold at prices reduced by 25 percent to 50 percent or more," Snider said. "It just makes good business sense to do work for a lower fee than to do no work at all. Wear and tear on equipment and additional usage of utilities are all negligible. The universal formula is still true: No work equals no income. Printers that can serve the immediate needs of their customers while filling otherwise unused downtime with lower priced work will prosper."
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- People:
- Carl L. Moore
- Deborah Snider
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