EUC with HCI: Why It Matters
How some execs set prices now
- 40 % match online prices to those offline
- 30% set all prices by matching rivals
- 28% have no Internet pricing strategy
- 22% set all prices only to recover costs and tack on profit
- 18% do customer research to determine value to buyer
Source: Survey of professional pricing society members
Price changes have the biggest, fastest impact on profits compared with other factors
- + 1% price= profits up 8.6%
- - 1% variable cost = profits up 5.9%
- + 1% volume = profits up 2.8%
- - 1% fixed cost = profits up 1.7%
Source: McKinsey & Co.
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