Pricing in the service industry
Date Submitted: 09/10/2006 03:50:37
Category: / Business & Economy / Companies
Length: 3 pages (833 words)
Category: / Business & Economy / Companies
Length: 3 pages (833 words)
According to Mckinsey Company's consultants, the fastest and most effective way for a firm to achieve maximum profit is to get its price right (Marn and Rosiello, 1992). These consultants reported that a 1 percent price improvement generates an average of 11.1 percent increase in profits among the 2,462 companies they studied. Given the importance of price in generating revenues and profits for a company, the approach used by service firms in price setting has been relatively unsophisticated. In …
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