Article at a glance:

The power of pricing

Downward pressure on prices has rarely been stronger. A slogging global economy has had an impact, but so have fundamental changes in the marketplace, including stronger buyers, more transparent markets, and the emergence of low-cost manufacturing powerhouses such as China. In this environment, managers may shy away from even thinking about raising prices, but the need to get price management right could scarcely be more urgent.

The take-away

A clear understanding of how revenue leaks away through mismanaged transaction pricing can show companies where lost profits could be regained. New tools are making it easier to manage transaction prices and thus preserve margins and increase operating profits.

This article forms some of the content in The Price Advantage, by Michael V. Marn, Eric V. Roegner, and Craig C. Zawada (John Wiley & Sons, January 2004).