SETTING PRICES THAT MAXIMIZE PROFITABILITY FOR NEW LAUNCHES
New products are the lifeblood of a company. What often happens is that these new introductions are made at price levels that do not take into account the value created for customers. What comes out of this is an increased price pressure and thinner margins, year after year. Innovation is essential in any industry, even if only to keep market share constant, but sometimes the value created can be destroyed by applying competitive price levels even to products that are superior.