Product costs and sales prices consist of many different factors and can be structured in many ways. Often, sales, finance, engineering and procurement each approach pricing and costing in a completly different way within the organisation. ๐๐จ๐ฉ-๐๐จ๐ฐ๐ง ๐ฏ๐ฌ. ๐๐จ๐ญ๐ญ๐จ๐ฆ-๐๐ฉ ๐๐ง๐๐ฅ๐ฒ๐ฌ๐ข๐ฌ ๐ฉ๐ซ๐จ๐ฏ๐ข๐๐๐ฌ ๐๐ฅ๐๐ซ๐ข๐ญ๐ฒ and will get everyone on the same page again.
๐๐จ๐ญ๐ญ๐จ๐ฆ-๐๐ฉ shows the current cost status. It's calculated from the cost of materials, manufacturing, labour and overheads based on the product design
๐๐จ๐ฉ-๐๐จ๐ฐ๐ง dictates the maximum a product should cost based on the market, pricing strategy and the cost of sales.
Depending on your market, organisation & strategy, either Top-Down or Bottom-Up is leading and will determine the other. However, the essence is simple: ๐ฌ๐ฆ๐ฆ๐ฑ ๐ต๐ฉ๐ฆ ๐๐ฐ๐ต๐ต๐ฐ๐ฎ-๐๐ฑ ๐ค๐ฐ๐ด๐ต๐ด ๐ญ๐ฐ๐ธ๐ฆ๐ณ ๐ต๐ฉ๐ข๐ฏ ๐บ๐ฐ๐ถ๐ณ ๐๐ฐ๐ฑ-๐๐ฐ๐ธ๐ฏ for a healty business!
