Iso‐profit pricing for product lines
Journal of Product & Brand Management
Article publication date: 1 October 2004
When considering a price decrease in response to competitive pressures or stagnating demand, management may ask how much additional volume must be sold at the new price to match the current profit level. This “iso‐profit” pricing problem has been studied extensively for single items manufactured using one resource. This paper solves three realistic extensions of the problem: when two or more items share a resource, when multiple items share multiple resources, and when resource vendors offer quantity discounts. Findings are summarized in 12 points, many of which are counterintuitive.
Curry, D.J. (2004), "Iso‐profit pricing for product lines", Journal of Product & Brand Management, Vol. 13 No. 6, pp. 453-468. https://doi.org/10.1108/10610420410560334
Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited