3min chapter

PPS Pricing Podcast cover image

Competitive B2B Pricing For Complex Systems

PPS Pricing Podcast

CHAPTER

Understanding the Reasons for Future Cost Increases and the Importance of Separating Cost and Price

This chapter discusses the reasons behind the anticipated increase in future costs, including the use of standard costs, allocating fixed overhead expenses based on volume, the 'death spiral' effect, skepticism about cost data accuracy, and the separation of cost and price in business decisions.

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