COST-DRIVEN VS. PRICE-DRIVEN PRICING—–Cost driven pricing is taking in all your costs and adding a profit margin on what you sell. Price driven pricing is coming up with a price that will cause your product or service to move. It’s usually a lower price, but with that comes less competition. If you get a handle on costs, become price driven and get market share—you will beat out the competition.
In the economy we are in for the next decade at least, the model to follow will be price driven pricing. The GOAL is to get market share.
Grow & Prosper,
Sanford Kahn, Business Author/Speaker