The Price Menu
Bringing Structure To the Uncertain World of Pricing
Journal of Professional Pricing Society
April 2002

Abstract:
Today's competitive landscape is frightening to many companies. Over time, customers have learned how to extract more value from their purchases by insisting on lower and lower prices. They have learned how to control the way their suppliers do business by exerting continuous downward pressure on prices. So how can a company begin to manage this situation? The answer lies in shifting the corporate mindset away from a policy of "our prices are flexible". If management allows prices to fall without a commensurate change in the level of satisfaction or utility delivered, the company is sending a message that prices are, in fact, open to negotiation.

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