Pricing software can spot pointless discounts and other profit-killers, but it isn't cheap.
Yasmin Ghahremani, CFO Magazine
June 1, 2008
The article suggests pricing software provides "2 to 5 points of gross margin increase". Does that suggest the reduction in discounts amounts to only 1 to 3 points? Discounts directly impact the bottom line, not just gross margins. A 10 point reduction in discounts, from 35% to 25% for example, should improve the bottom line by 30% or even more.
Posted by Don Sherwood | July 08, 2008 07:56 pm© CFO Publishing Corporation 2009. All rights reserved.