How Do You Know When the Price Is Right?

Too often when managers think about pricing, the first question they ask is, What should the price be? In fact, what they should be asking is, Have we addressed all the considerations that will determine the correct price? Robert J. Dolan describes two broad qualities of an effective pricing process and provides eight steps to enable managers to develop and use such a process. The pricing scorecard included at the end of the article will allow managers to evaluate how well their pricing practices meet these guidelines.