Sublime

decided not to offer any bundles,

For more on this topic, we encourage all CFOs to read Thomas A. Stewart’s classic book Intellectual Capital: The New Wealth of Organizations. Pay particular attention to the extensive appendix, where he suggests specific accounting rules that better align with an information-based economy than with a manufacturing-type economy, which generated many

A business therefore shouldn’t base its prices on markups it thinks customers will deem reasonable. It should instead base them on the customers’ perceptions of the value provided.

“No one can make any money in our business. Every single company has too much capacity. Every time a project comes up for bid, someone needs it desperately and offers suicidal prices. Sometimes it’s us, sometimes it’s a competitor . Even though four suppliers make up 80 % of the global market in our business, no one makes any money.”

The risk for the restaurant owner is limited, because guests can only eat or drink up to certain personal limits anyway.

The biggest challenge facing pricing in the modern world is overcapacity

Where is a company’s optimal price position? A company must make a conscious decision about price positioning . In fact, whether a company selects a high-price or low-price

Consistent, high quality is a must: This prerequisite comes up time and again. Successful premium supplier s maintain high and very consistent quality levels. Their service must also meet the same requirements.

Managers have become keenly aware that value alone does you little good unless you can communicate it successfully. That means that customers understand and appreciate what they are buying. Remember, the only fundamental driver of willingness to pay is the perceived value in the eyes of the customer.