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Do You Know Your Floor? basis for monitoring assumptions as
Outdated pricing assumptions are conditions change. You’ll win more
one of the deepest contributors business, knowing how low you
to lost margin in challenging can go. You’ll also uncover the real
markets. On the one hand, they barriers to best cost in the process.
cause companies to quote too high,
leading to lost deals. On the other How do You Model the Effect of
hand, they cause companies to Changes on Price Points?
bid to win the deal, but later lose When a major change occurs in
money. You can’t make it up on your business to process, supply,
volume, when your real pocket price cost, or volume, do you remodel
is unprofitable. price points, or does pricing
throughout the year stay where
How Accurate is Costing for it was set? If you’ve not created
Custom Orders? a process to ensure price points
In many companies, custom bids adapt as your business changes, you
have both science and a fair amount might have started with the right
of “art” built in. If the science is prices, but the dynamic nature of
based on old facts, you know the this economy may have you on
outcome – unpredictable margin per the wrong price points. Make your
order. Worse yet, “art” is typically pricing process dynamic. Link it
based on history. Simply put, people systematically to change events.
bid based on “the last order that
looked like this one.” When was Alta Via helps companies
that last order? Was it based on understand costs better and
assumptions and data that have implement more dynamic costing
changed? Companies who do a lot and pricing processes. If you’d
of custom orders should update like to learn more click here for
pricing assumptions and have a XXXXXXXXXXXX
Alta Via Consulting, LLC
