Pricing Inversions, or Smart vs. Lucky

Pricing is one of the most important - and mysterious - parts of a business. Price too high, and you lose customers; price too low, and you leave lots of profit on the table. An entire price consulting industry exists, with great leaders like Patrick Campbell of Pricing Intelligently. One important rule of thumb is that input costs should almost never determine the price of a product. What your costs do is have two effects: