All it takes is a cursory look at the news to find plenty of examples of the pricing issues of well-known companies being covered in the public sphere. These examples can help us to determine which pricing concerns are most important to management. While any pricing concern could be most important to a given company at a given time, there are a few recurring themes across industries.
When crafting a corporate policy, it is important to translate a company’s reality into pricing rules that can be easily understood and applied across the board. Looking at price variances in a few different ways can help you better understand that reality. In this article, the author explores and explains multiple types and drivers of price variance and their implications for developing pricing strategies.