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2010 | OriginalPaper | Buchkapitel
Price Initiatives—Developing and Implementing
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Probably the most impactful area where a pricing program and leader will draw attention is from the establishment and tracking of price initiatives. Price initiatives can be defined as those planned actions that are designed to raise the overall net sales price for a company, thereby adding incremental revenue dollars. For example, if product A sells for $100/unit and a 10 percent list price increase is enacted, then product A would now sell for $110/unit with exactly the same costs, so that an additional $10/unit would be considered incremental revenue. These dollars would add up to profit.