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Do you have a long-term pricing escape valve? Actively pricing products across their life steering wander is more than than and more important, particularly in instauration-intensive industries. Failing to do so whitethorn forego potential profits or even subvert value. OCTOBER 2010 Walter L. Baker Michael V. Marn, and Craig C. Zawada Source: Marketing & gross revenue Practice In the fresh 1990s, the worlds common chord major independent producers of hard-disk drives invested or so $6.5 billion in research and development in the assembly line of upright four years. During the next decade, the bytes that can be stored per whole of a drives surface force field affix a thousandfoldwhile the price per unit of that surface athletic field dropped 70 percent. The three companies created enormous value for customers. Yet their misadventure to price products correctly throughout this period of significant instauration contributed to net losses totaling almost $ 800 million.

Entire industries can correct to when companies fail to grasp the importance of pricing products or liaison across the life steering wheel, particularly in innovation-intensive sectors such as consumer electronics and consumer durables, IT hardware and software, medical devices, and pharmaceuticals. Thats especially true today. Companies go into products more regularly, with life cycles often measured in months, not years. Theres external pressure for low prices from customers expecting more for less and internal pressure from the belief that pricing is a make-or-break factor when products launch. And a company may have a number of related products in the marketplace sim ultaneously, which complicates their life cy! cle pricing.If you want to get a full essay, order it on our website: OrderEssay.net

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