In a keynote speech at the 2018 Manufacturing Finance Summit, Dr. Peter Colman, a global pricing strategy expert, explained that price is the strongest profit driver for manufacturers. The data he cited showed that a 5% increase in price results in a 33% increase in operating income, whereas a 5% increase in volume only results in a 20% increase in operating income.
The message here is clear: selling smarter is better than selling more.
And while many things have changed for manufacturers in the years since, this wisdom has not. Pricing remains critical for manufacturers as a leading revenue driver.