A pricing audit is often a good first step towards unlocking the value of your pricing opportunity. There is often significant value in asking an experienced pricing leader to review a company’s current pricing processes …Continue reading
It’s been about 4 years since we last wrote about website valuations, continuing the work of a project we started 8 years ago. One of our readers recently commented that valuations have risen. He’s absolutely …Continue reading
In business and investing, the margin of safety is the amount of buffer that you have above your breakeven target (for a deal) or the intrinsic value of a stock (for investing) to ensure that …Continue reading
In the wide world of retail, every product or business seems to need some kind of a unique value scheme these days. They need something to set their specific product or brand apart from all …Continue reading
Unit contribution margin is the difference between the average selling price of a unit of product and the variable cost of making and delivering that unit. This represents the incremental “contribution” of an additional unit …Continue reading
While accountants are trained to provide a full view of what happened to the finances of a business, an economist or business analyst will speak of “thinking at the margin”. To “think at the margin” …Continue reading
The weighted average contribution margin of a company or business unit is the amount by which an incremental unit of net sales contributes to total profit. For a single product business, the contribution margin is …Continue reading
If you run your own business and it has all been plain sailing, then you are one of the lucky few. Most businesses have their peaks and troughs, and most must fight their way out …Continue reading
As a cautionary tale, we present to you a Vegas story in which a janitorial supplies distributor’s best price was crushed by a food service competitor who had already covered their cost to serve.
In your own business, where are you at risk? What kinds of competitive barriers can you throw up (product or service) to defend your market position? Playing offense, can you use this approach to take share within an account?
Because there’s no guarantee that what happens in Vegas, stays in Vegas