The Competitive Advantage

Matanovich, Tim
November 2004
Marketing Management;Nov/Dec2004, Vol. 13 Issue 6, p16
This article looks at the pricing process implemented by some U.S. companies and its impact on a company's business. With a day-to-day, in the trenches understanding of their markets, account executives may be in the best position to set prices. They know their clients, they often know their primary competition, and they know their costs. They know whether their markets are prospering or in the dumps. Finally, with their compensation based on margin, they live or die by their daily price decision. With no guidelines for setting prices, there is likely a high degree of variance in pricing practices nationwide. In one sense, that should be no surprise. Price levels are often markedly different in different locations. Good pricing process forces a look at the profit consequences of alternative solutions, aligning bottom-line with top-line results. Once again, in a labor-intensive business like market research, cost savings can easily run to six figures. Lower costs and a better understanding of those costs also create a competitive advantage in bidding situations. Given the rise of reverse auctions and electronic markets, that's becoming increasingly important. Not only will understanding costs give a company greater bidding flexibility, it will also permit companies to make more money when they do win. Maybe, most important, it helps to know when to walk away.


Related Articles

  • Focus List profit update.  // Dow Theory Forecasts;5/9/2005, Vol. 61 Issue 19, p1 

    The article presents information on business issues. It reports that excluding a tax-related gain of $0.16 per share, New York based company Bunge Ltd. earned $0.82 per share in the March 2005. The company increased its 2005 pershare-earnings outlook to $3.90 to $4.07 excluding the tax gain....

  • Suit: Foam prices fixed. Perry, David // Furniture/Today;9/20/2010, Vol. 35 Issue 3, p1 

    The article reports on the lawsuit filled against major North American foam producers, accusing that these firms are involved in an antitrust conspiracy to fix prices of foam. It states that the companies involved include Hickory Springs Manufacturing Co., Valle Foam Industries Inc., and Domfoam...

  • MARKET TRENDS.  // ISO & Agent Weekly;9/16/2010, Vol. 6 Issue 33, p7 

    The article offers news briefs related to the business enterprises in the U.S. in 2010. The consumer's average credit card debt in the country has been reported to decline by 2.9 percent in January. The differential pricing for cash and card purchases has been forecasted by consumers to affect...

  • Crocodile Tears on a Cash Register Patriotism. BRASCH, WALTER // Moderate Voice;9/9/2011, p2 

    The article offers the author's insights on the hypocrisy of some patriotic businesses in the U.S. in the aftermath of the September 11, 2001 terrorists attacks. The author says that patriotic business is fine but suggests that if American businesses aspire to be patriotic, they should do more...

  • Atlanta Market Sets Stage for Optimism in 2011. Corral, Cecile B. // Home Textiles Today;1/10/2011, Vol. 32 Issue 1, p1 

    The article reports that category suppliers are showing optimism for improved business trends in 2011 with the Atlanta International Area Rug Market as their launching point for business in Georgia. Arash Yaraghi, principal at Port Washington, New York-based Safavieh states that they are...

  • Almost All Integrateds Pushing Increase. A., M. // Official Board Markets;2/16/2008, Vol. 84 Issue 7, p3 

    The article focuses on the announcement of Smurfit-Stone Container Corp. on its price increase by $50 per ton in all their major integrated containerboard effective on March 1, 2008. The author stated that after Smurfit-Stone announced its increase, several companies have come out with the same...

  • Top Down Doesn't Drive the Bottom Line. GARCIA, JULIE; BLADEN, AMY; JOHN, STEPHEN // Chief Learning Officer;Dec2010, Vol. 9 Issue 12, p70 

    In this article the authors discuss their contention that business planning and strategy that comes from the highest echelons of management and meant to increase control does little to enhance the competitive advantage of U.S. business enterprises. A number of issues are addressed including the...

  • Electricity Price Regulation and Electric Power Enterprises' Behaviors. Jinghong Zhou; Yang Hu // International Journal of Business & Management;Feb2011, Vol. 6 Issue 2, p133 

    Because the electric power enterprises have natural monopoly characteristic, various states generally adopt the control to the electric power enterprise in order to limit their market influence. The electricity price control is one of electric power control ways. This paper briefly introduces...

  • OPS AND THE PROBLEM OF SMALL BUSINESS. ROBISON, JESSE // Law & Contemporary Problems;Autumn1954, Vol. 19 Issue 4, p625 

    The article focuses on the U.S. Office of Price Stabilization (OPS) and the problem of small business in the U.S. As stated, the difficulties of small business are intensified under price controls and the effect on basic small business economy may more than offset the advantages deriving from...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics