A: Once you get the price-cost-volume relationships down on paper, you can begin to play with these factors. Scenarios can be created to help you sort through the calculations and envision how various factors will affect your profit. You can look at peer groups and industry averages to estimate what the market can bear, then take into account fixed overheads to come up with a desirable pricing scheme.
As a trusted business advisor, John Lafferty has created lifelong and long-lasting relationships delivering proven and measurable financial results for start-ups to emerging and Fortune 500 companies. The founder of CFO-Pro, he has become the "go-to virtual CFO" bringing unique financial strategy, planning, infrastructure and operations value to corporate and privately-held enterprises, entrepreneurs and investors across a wide range of industries.
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