Pricing an industrial service

Morris, Michael H.; Fuller, Don

doi:10.1016/0019-8501(89)90030-8

Cited by 63 publications

(49 citation statements)

References 7 publications

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“…Specifically, by studying 43 pest control companies in the USA, Schlissel (1977) found that the most popular objective was profit maximization followed by the achievement of a satisfactory profit. Similarly, Morris and Fuller (1989) investigated the pricing behavior of 71 US accounting companies and found that the achievement of a satisfactory short-term profit was the most popular objective among the companies in their sample. Other significant objectives were the achievement of a long-term profit along with the ''determination of competitive prices''.…”

Section: Pricing Objectivesmentioning

confidence: 99%

“…Moreover, an effort is being made to examine the extent to which the pricing objectives and the pricing information are interrelated. A comprehensive review of the existing literature reveals that these two issues have been investigated in isolation (Meidan and Chin, 1995;Morris and Fuller, 1989;Schlissel, 1977;Tzokas et al, 2000a) and, to the best of our knowledge, no previous research has examined whether different pricing information is associated with different pricing objectives.…”

Section: Introductionmentioning

confidence: 96%

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Service pricing: An empirical investigation

Avlonitis

Indounas

2007

Journal of Retailing and Consumer Services

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Section: Pricing Objectivesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 96%

Service pricing: An empirical investigation

Avlonitis

Indounas

2007

Journal of Retailing and Consumer Services

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“…In their study of the pricing practice of public accounting firms, Morris et al (1989) found that CPA firms had employed a formula-based, cost-centered pricing approach. Because competitive conditions are typically more intense in the services industry than in product markets, where there are relatively low barriers to entry, and where there is a need to continuously re-design and innovate concerning service delivery.…”

Section: Cost -Price Relationship Applications Selected Industry Studiesmentioning

confidence: 98%

An Entrepreneurial Role for the Accountant: Innovation in the Cost-Price Relationship and the Accounting-Marketing Interface

Schoch

Teoh

1995

Journal of Small Business & Entrepreneurship

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This paper suggests a potential entrepreneurial role for the accountant, based on a survey and analysis of the literature on cost-price relationships and the accountingmarketing interface. The authors conclude that accountants should initiate steps to foster an effective working relationship with marketers. Through this process accountants are then able to generate innovative approaches to solve the marketers' problems, such as pricing strategies and market profitability analysis. Accountants, with their financial knowledge, are ideally placed to develop relevant analytical tools for the marketers' use. Unfortunately, accountants hitherto have not been proactive enough and have not taken a strategic perspective, which would help them to shed their image of not being responsive to changes in the environment. Recently emerging costing techniques and concepts should provide accountants with opportunities to apply these to marketing. The success of these efforts demand that accountants should innovate by assisting marketers in setting, and measuring achievement of targets, which will lead to greater wealth creation for a firm. Taking such a stance would place the accountant in the role of entrepreneur. How the "entrepreneurial" traits can be developed among accountants is also suggested. SOMMA IRE Apres avoir passe en revue et analyse les publications sur /es relations entre /e c01'1t et le prix et Ia comptabilite et le marketing, les auteurs de cet article suggerent que les comptab/es jouent un role d'entrepreneur et prennent des mesures afin d'ameliorer leurs relations de travail avec /es specialistes du marketing. Ainsi, if leur sera plus facile de trouver des solutions originates aux problemes des specialistes du marketing, p. ex. des strategies d'etablissement des couts et des analyses de Ia rentabi/ite des marches. Les comptab/es possedent des connaissances financieres qui les placent dans une situation ideate pour concevoir des outils analytiques convenant aux specialistes du marketing. Malheureusement, its n 'ont pas ete assez proactifs jusqu 'a main tenant et n 'ont pas ado pte une strategie qui les aura it aides a se departir de leur reputation de specialistes qui ne perroivent pas /'evolution de Ia conjoncture. /Is peuvent cependant se rattraper en appliquant /es nouvelles techniques et theories d'etablissement des couts au marketing. Pour que leurs efforts soient couronnes de succes, /es comptables doivent innover en aidant les specialistes du marketing a fixer des objectifs eta mesurer /es progres, ce qui creerait plus de richesse pour l'entreprise. Le comptable se trouverait en que/que sorte a se mettre dans Ia peau de /'entrepreneur. Les auteurs suggerent aussi des farons de developper une menta/ite d'entrepreneur.

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“…Industrial product prices depend on the budget or the economic condition of the customer's organization. Different rates can be charged for the products depending on the buyers, quantity, time, place, type of maintenance/ service and duration (Morris, 1989). Pricing not only serve as a promotional purpose, but also contribute to efficient use of service capacity.…”

Section: Pricementioning

confidence: 99%

Dimensioning of product support: issues, challenges, and opportunities

Markeset

Kumar

Annual Symposium Reliability and Maintainability, 2004 - RAMS

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The research study examines issues related to dimensioning of product support strategies for advanced industrial products on the basis of a case study conducted in a manufacturing company that produces automated production line systems. The focus is mainly on investigating engineering factors/parameters that influence product support.Product support can be defined as any form of assistance that companies offer their customers to gain maximum value from manufactured products. In general, it creates additional value/profit for the product owner as well as for the manufacturer. It can be broadly classified into two, namely, services to support product and services to support customers. Services to support the product are mainly dependent on the product's designed-in characteristics, operational environment, as well as on owner's operational, maintenance, and support strategies. Services to support the customer are influenced by customer characteristics related to operational and maintenance skills and capabilities. Dimensioning of product support is influenced by the product's designed-in characteristics -especially those characteristics related to RAMS (Reliability, Availability, Maintainability and Supportability).Within the scope of the case study, various approaches and methods to integrate RAMS in combination with LCC (Life Cycle Costs) in design work processes to arrive at the most cost effective product support strategy for industrial systems and components is examined. Often a considerable amount of information and data about product failures/weaknesses and product RAMS characteristics is available in various databases. Unfortunately, these information sources/databases are not usually integrated with work processes in design, and thus these cannot be used for dimensioning of product support effectively. An approach for integrating RAMS information into design processes is suggested.Furthermore, various aspects of product support strategies for functional products where the customer buys only the performance, not the physical product is studied and analyzed. In the conventional product scenario, the manufacturer benefits from iii iv TORE MARKESET selling support services, whilst this profit generating process becomes a cost and liability in the functional product scenario. Based on this study it is concluded that the product support strategy for functional products will differ considerably compared to that for the conventional product.Moreover, it is shown that the service delivery strategy of the manufacturer or service provider must be in line with the service reception strategy of users/customers. The study also provides a critical view on the role of the negotiation process in the development of cost effective and competitive service delivery strategies. In addition, there exists a need to involve personnel who are involved in the support services as well as in manufacturing, assembly, and quality assurance, etc. processes in the design process to arrive at the best strategy for product support....

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Pricing an industrial service

Cited by 63 publications

References 7 publications

Service pricing: An empirical investigation

Service pricing: An empirical investigation

An Entrepreneurial Role for the Accountant: Innovation in the Cost-Price Relationship and the Accounting-Marketing Interface

Dimensioning of product support: issues, challenges, and opportunities

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