Do you know how to price your products?
Abstract: Like most businesses, manufacturers must make enough profit on their product sales to generate an adequate return on investment. The difference for manufacturers is that setting prices based on margin information may not adequately reflect production time. A high-margin product that moves through the plant slowly may actually be less profitable than a low-margin product produced in half the time. This article examines several ways to approach pricing. (Updated: 3/20/12)