Competing on price is ultimately a bet on your cost position
As economic turmoil continues, many companies are reconsidering their strategies with an eye toward going lean and slashing prices.
And that might work for a few companies—but very few. Instead, companies should compete "on the basis of initiatives for which their customers willingly pay higher prices," says Frank V. Cespedes, a senior lecturer at Harvard Business School, who spent 12 years running a professional services firm.
That's right. Higher prices, not lower.
Q: Within-industry returns: Why is this important to performance pricers?
Great pricers constantly mine this gap to identify opportunities, and they mind the gap over time, seeking ways to extend perceived value. To mine the gap, focus on how you can
This article was provided with permission from Harvard Business School Working Knowledge.