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Driving Profitable Growth: How to Set Prices Throughout the Product Life Cycle

 
  Arthur F. Rothber, Managing Director, CFO Edge, LLC  
   
  This is the third article in a three-part series on improving profitability.

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  Article Summary  
In this final installment of the three-part profitability series, we look at a pricing structure review as a critical way to improve profitability.

In response to the slow recovery continuing to pressure revenues along with increasing costs of raw materials, cost cutting is frequently seen as the go-to strategy for improving profits. But generally it is not possible to save your way back to prosperity.

A better approach to growing profits is to combine a profitability analysis with the re-evaluation of pricing structures.

Discussed in this article is how a customer and product profitability (CPP) analysis and its data on revenue drivers should be leveraged and applied to periodic pricing re-evaluations throughout product life cycles.

Pricing adjustment strategies are addressed for three key product life cycle phases: launch phase, midlife phase, and late phase.

Greater Los Angeles and Southern California executives can benefit from talking with a CFO services professional who is experienced in CPP analyses and in applying them to re-evaluate pricing strategies.

Other articles in the profitability series can be found here:

Article 1: How to Drive Profitable Business Growth
Article 2: Will Your Sales Coverage Model Help Drive Profitable Growth?
Article 3: This page describes the third article.

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