Since no variable can influence margins as much as pricing, almost all companies need to approach the management of selling prices, discretionary discounts, and potential price increases with the same firmness they use to manage manufacturing and procurement costs.
gross margin contribution margin
Common financial measures include gross margin, contribution margin, and net margin. Each reflects profits after certain costs are subtracted. Profit , on the other hand, refers to financial gain or revenues minus expenses. Moreover, the potential benefits of improved pricing can flow through an entire organization, since more predictable and effective pricing policies can help manage sales force compensation, promotional expenditures, incentive programs, cost allocations, and operational planning. This