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Cost & pricing
Pricing
Setting price on value to the customer and competitive position, checked against cost and margin — not cost-plus by default. The highest-leverage lever in most businesses.
Owned by: Senior analystTest band: Senior analyst
In practice
A 1% price increase with no volume loss usually adds more profit than a 1% cost cut. Test it on a segment before assuming volume will fall.
The kind of thing the test asks
- Costs rose 6% this year. The pricing decision is…
More in cost & pricing
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