Article at a glance:

Bringing discipline to pricing

Companies that organize their sales branches by location or product type may be missing one of the most important factors to affect pricing. The market environment—the level of competition and the scope of opportunity—has a bigger effect on a company's ability to set prices than many other factors do.

The take-away

Understanding a market’s competitive forces and grouping sales offices accordingly can help managers create pricing plans that take advantage of a sales branch's competitive position.