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Walter Schroeder Library, Milwaukee School of Engineering
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Gavran, Russell E.
Subjects
Pricing
Break-even analysis
MSEM Thesis.
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Gavran, Russell E.
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Effective pricing le...
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Effective pricing leads to business success / by Russell E. Gavran.
by
Gavran, Russell E.
Subjects
Pricing
Break-even analysis
MSEM Thesis.
Description:
51 leaves : ill. ; 29 cm.
Contents:
Introducing cost, volume, price, and gross profit margin relationships -- Formulating an effective pricing strategy -- Implementing pricing strategies - examples and comparisons -- Effective pricing leads to business success.
A business begins to fail for several reasons: Either because the company is selling at too low a price, or the cost of goods sold are too high if the gross profit margin is decreasing. Business failure is also due to a sales volume increase coupled with a cash flow problem. It has been a standard business practice to lower prices and increase product volume and turnover in order to compensate for a lag in business growth and development. However, the additional costs, such as operating expenses, personnel needed to process invoice orders as well as to move products and purchase materials, can cause a business which is already in trouble to plunge quickly toward an inevitable collapse.
This paper will demonstrate how an increase in prices, reduction in volume, and efficient use of personnel should lead to a business success. In order to show that increase in pricing and efficient use of personnel are conducive to a gross profit margin growth, other more conventional methods which do not safeguard the success of a business will be compared to effective pricing methods. Also, methods of maintaining and developing effective pricing strategies will be described and compared to the increase in pricing strategy mentioned in Steinmetz’ lectures on “How to Make Your Prices Stick.” Several businesses and companies will be examined in terms of their success or failure due to planned pricing strategies and their subsequent implementation.
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Walter Schroeder Library
Master's Theses
AC805 .G38 1991
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