Why is Price Management Important?

Posted by Philip Huthwaite on February 4, 2015
Philip Huthwaite
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Quotes from Industry Research:

GARTNER REPORT

"A successful implementation can increase margins by 50 basis points or more, and increase revenue by 2% to 4%."

MCKINSEY & COMPANY REPORT 

"Just a 1% point improvement in the average price of goods and services leads to an 8.7% increase in operating profits for a typical company."

WARREN BUFFET (BERKSHIRE HATHAWAY INC.)

"The single most important decision in evaluating a business is pricing power."

MIT SLOAN MANAGEMENT REVIEW

"Pricing has a substantial and immediate effect on company profitability. Studies have shown that small variations in price can raise or lower profitability by as much as 20%".

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