‘Volume’ and ‘price’ are two of the most important things in any business. If there is too much volume bought or sold at too high or too low a price, the finances of the entire company can rocket or plummet. Consultants often offer advice on how to cut costs and therefore drive profits up as well as analyse sales and stocks to work out the most efficient ways of selling products.
So what does the consultant need to know? Read the next 10 links and you should get a swift idea…
1) http://www.caycon.com/blog/2011/02/ten-top-product-pricing-models-for-startups/ An article giving advice for start up companies on ways of pricing their business models – different models work for different businesses remember!
2) http://www.marketingmo.com/strategic-planning/how-to-develop-a-pricing-strategy/ Not sure how to develop a pricing strategy? Read this great detailed account of how to do it with examples. If you sign up to the website for free, you can even get further step by step guidance on pricing strategy
3) http://www.tudorbusinessconsulting.com/blog/category/optimal%20pricing The first in a ten part blog series on strategic pricing.
4) http://quantaconsulting.com/article1.php The director of Quanta consulting explains here why volume and price are so important for a business
5) http://hbr.org/1992/09/managing-price-gaining-profit/ar/1 Price management is majorly important to gain profit – Harvard Business School explains why
6) http://blogs.hbr.org/2013/10/when-it-is-wise-to-offer-volume-discounts/ When is it good to offer discounts? Harvard Business School again, with an interesting insight
7) http://hbsp.harvard.edu/multimedia/flashtools/pricing/ Not sure how to calculate your pricing? Harvard offers this flash tool to help you work it out easily!
8) http://www.carlsonschool.umn.edu/Assets/71544.pdf What happens when competitors raise or lower their prices? This important article from the Harvard Business Review in 2000 explains ‘How to Fight a Price War’ and gives varying opinions on what the best action to take.
9) http://ernesto.villanueva.tripod.com/estfomato.pdf Academic article from Indiana University on the importance of pricing in business.
10) http://www.imshealth.com/ims/Global/Content/Insights/Featured%20Topics/Emerging%20Markets/Magazine_Asia_softcopy_Price_Volume3.pdf A short pharmaceutical study on volume and price in this sector of industry – includes a BCG growth share matrix.