Productivity planning – 2 – Pricing

Pricing can be discussed as a separate topic as it often makes or breaks a project or product. There is often a temptation to underrate or reduce pricing to attract more buyers but this can backfire.

The pricing will be based upon the cost, user and usage, kind of market. Costs will include manufacturing, sales, consumables and distribution apart from any other costs that will occur. A common problem is the Human Resources and tendency to think about making people work more to reduce costs. This has hidden costs like reduced productivity, quality and others such as employee churn that people don’t consider. This is common in IT projects.

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