Doesn’t every business want to maximize its profits? Pricing textbooks certainly all assume they do, or at least that they want to achieve a certain profit level under given constraints. But in truth businesses rarely focus on only profitability; most strive to satisfy various stakeholders and meet the goals of balanced scorecards. And even when a company is focused tightly on financial performance, there are at least eight reasons it might have for deliberately accepting something less than the full value it could capture from an offering.
Author: Stefan Michel
Source: Harvard Business Review
Subjects: Finance, Management, Pricing