In today’s competitive business climate, creating a profitable pricing strategy has become more important than ever. No longer can you use a simple formula to mark items up. You need a comprehensive strategy that encompasses all aspects of pricing. That is what The Pricing Pyramid gives you. Employing the methodology used in The Pricing Pyramid, you will see tangible results in the form of a stronger bottom line.
Think of the pricing pyramid as a series of building blocks that when stacked form the pyramid. ”. Each block represents a stage to be completed towards your strategy. The Pricing Pyramid consists of 10 blocks over 4 levels to reach the peak; your “Pricing Goal
Visually The Pricing Pyramid looks like this:
In order to even start to build the pyramid, the most critical step is management buy in. Whether you are a $50k business or a $50M business, in order to succeed, management has to commit to seeing the process through. If you pick pieces, you will see short term gains but eventually the structure will weaken and your strategy will come crashing down like a house of cards.
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