There are three major levers an organization can pull to maximize revenue and increase profit:
Increased Sales Volume – how many units you are selling
Decreased Costs – both fixed and variable
Adjusted Pricing – what rate you charge
For years (decades even) there has been ample data and academic research, not to mention the intuition of most sales managers, that consistently shows that price is the most effective lever for impacting profit.
And yet, for years (decades even!) companies have spent more time and energy trying to cut costs and increase sales volume than on calculating the optimal price to charge for their products and services.