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Iso‐profit pricing for product lines

David J. Curry (Department of Marketing, University of Cincinnati, Cincinnati, Ohio, USA)

Journal of Product & Brand Management

ISSN: 1061-0421

Article publication date: 1 October 2004

Abstract

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.

Keywords

Citation

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

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited