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The linear performance pricing is one way to identify a technical cost driver that is crucial for the product price of a sourcing category, which can then serve as the basis of objective target prices.

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Oma Aufderhar

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2y ago

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What is linear performance pricing?

The linear performance pricing is one way to identify a technical cost driver that is crucial for the product price of a sourcing category, which can then serve as the basis of objective target prices.


What is the primary output of linear performance pricing analysis?

The primary output of linear performance pricing analysis is a pricing model that optimally aligns prices with the value delivered to customers while considering cost structures and competitive positioning. This analysis helps identify the most effective pricing strategies to maximize revenue and profitability. Additionally, it provides insights into customer willingness to pay and the elasticity of demand, enabling businesses to make data-driven pricing decisions.


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