gross profit margin

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Value Pricing in the Gross Profit Margin Trap

GP% (Gross Profit Margin) is used broadly for pricing decisions across many organizations, namely those which transition from a legacy in cost-based pricing towards a more value-based pricing approach. However, GP% is not an appropriate measure for price setting. Employing GP% in value pricing is just one of many examples where an overly simplistic compromise is often made, sometimes putting a business into bedlam, as the author explains.

By |2022-03-24T19:29:17+00:00July 31, 2021|Pricing Articles, Value Pricing|0 Comments
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