Incremental pricing - what's that all about?

Blog Publisher’s comment:

This month’s issue of Larry Hunt’s Newsletter contains an interesting, well-written, thought-provoking article about pricing (a subject that everyone loves!)

Larry Hunt’s Newsletter

SPECIAL REPORT March 2014

Evaluating Incremental Vs. Full-Cost Pricing

By Larry Hunt and Dirck Holscher

Knowing your costs is key to making good profits in any business, and printing is no exception. But what are your costs? You see, there are fixed costs, variable costs, incremental costs, and other types of costs. Which costs are we talking about? In this report, I'd like to try to clarify some of these costs and then discuss when it might be appropriate to use each of them.

Summary

Full-cost pricing should be used for most of the work you do every month. But there are occasions when you can use “incremental pricing” to bring in some additional revenue that you would not see otherwise, thus adding some profit dollars to your bottom line.

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To subscribe, contact Larry Hunt Publications, P. O. Box 1269, Berryville, VA 22611 - (540) 336-3360, fax - (888) 345-3860, email: dirck@larryhunt.com, web-site: www.larryhunt.com. Editor: Dirck Holscher.