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Iso‐profit pricing for product lines

Iso‐profit pricing for product lines When considering a price decrease in response to competitive pressures or stagnating demand, management may ask how much additional volume must be sold at the new price to match the current profit level. This “iso‐profit” pricing problem has been studied extensively for single items manufactured using one resource. This paper solves three realistic extensions of the problem: when two or more items share a resource, when multiple items share multiple resources, and when resource vendors offer quantity discounts. Findings are summarized in 12 points, many of which are counterintuitive. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Product & Brand Management Emerald Publishing

Iso‐profit pricing for product lines

David J. Curry
Journal of Product & Brand Management , Volume 13 (6): 16 – Oct 1, 2004
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Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
1061-0421
DOI
10.1108/10610420410560334
Publisher site
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Abstract

When considering a price decrease in response to competitive pressures or stagnating demand, management may ask how much additional volume must be sold at the new price to match the current profit level. This “iso‐profit” pricing problem has been studied extensively for single items manufactured using one resource. This paper solves three realistic extensions of the problem: when two or more items share a resource, when multiple items share multiple resources, and when resource vendors offer quantity discounts. Findings are summarized in 12 points, many of which are counterintuitive.

Journal

Journal of Product & Brand Management – Emerald Publishing

Published: Oct 1, 2004

Keywords: Breakeven analysis; Profit; Pricing; Promotional methods; Pricing policy

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