1. Establishing the fundamental relationship of Price, Cost and Profit, and the pricing impact of the ‘Law of Supply and Demand’.
2. Presenting twenty three of the most popular pricing strategies used in both retail and commercial markets today. These strategies can be combined to suit your products and markets.
3. Introducing the design and use of ‘Supplier Performance Incentives’ and ‘Performance Based Contracts’. These are two of the most innovative forms of supplier compensation used across all industries worldwide and have recently become key components of the ‘performance management’ initiatives of the US Federal and State governments.
4. Examining the basic mechanics of cost estimating and profit forecasting. It also details the use of Profit Sensitivity Analysis for monitoring product and project profitability.
5. Summarizing the successful negotiation tools used by both Buyers and Sellers. These tools assist both sides to reduce their risk and improve the benefits they receive from a contract.
Extensive examples are provided to enable you to apply these tools to your own product pricing and profit forecasting activities. ‘Price & Profit’ is an extensive reference book that provides a solid foundation on pricing for students and new employees, as well as deeper skills improvement for seasoned salespersons and buyers to create and manage complex compensation contracts.