I think Laura Mappin is great.
She sent me this comment and diagram:
I checked out your blog and am very curious about your pricing discussions. I’m a small business person new to pricing products – making my way into a new business after years in hi-tech. I’ve looked at my issues from so many angles and have changed my approach several times. There’s nothing cast in stone about it, it seems to me.
As I read your latest post of your email exchange with Dieter Brandes, I saw this drawing in my head as possibly the barest kernel you guys are discussing.
It’s not about making a margin. It’s about bringing in a certain amount of money (pink) selling whatever products (type of product, end price, % profit per item or type of item, quantity of product sold is immaterial to this discussion). So, it can be acceptable to have a product (E) that you sell a lot of, make very little off each one, but the sales of E overall adds significantly to what you bring in. (guess I shouldn’t have colored it pink ;)
Anyway – just curious if this is one of the points you’re trying to make.
I suspect trying to make every product be sold at the same % profit makes it easier to run the store ;) Also, this method requires maybe more rigorous cost calculations to make sure they’re representative?
Thanks for your blog thoughts – and your comments.
ME: Is this the point I am trying to make ? Comments and criticism are welcome.
E-mail: ajbrenninkmeijer (a) cs.com