Monday, August 31, 2009

Six Sigma Pricing

Authors: ManMohan S. Sodhi and Navdeep S. Sodhi
Published: 2008
Publisher: Pearson Education
This book is very relevant for the product companies. Product companies set a list price for their products. However they also allow their sales team to offer discounts on the list price to their customers within a certain limits. But often it so happens that the sales force offer heavier discounts than what is allowed for due to various reasons for e.g. to meet their sales target, to keep their customers happy etc. However this adversely affects the revenue and profits of the company.
In this book the authors describe a very practical and pragmatic approach of using Six Sigma methodology to improve the pricing operations and increase the bottom line. They have very well supplemented it by discussing a real-life case study. This case study is a lesson on how to strike a right balance between generating revenue and profits and keeping all the stakeholders (especially the sales team and the customer ) happy.
Good introduction to pricing operations and Six Sigma methodology has also been provided for novices in this area. This would help them to understand the contents of the book better. However this book does not claim to provide a very comprehensive treatment of Six Sigma. Only what is needed in the context of pricing operation has been described.
I found this book quite useful and got very good tips on running a Six Sigma project on pricing operations.
On the negative side the contents of the back cover jacket of the book has glaring spelling mistakes (at least around 10). And to add to that there is an errata sections correcting around another half a dozen mistakes. These mistakes in a book about using Six Sigma methods is difficult for me to digest !
But overall a very good book and I recommend it for every organizations whose profits dip due to ineffective pricing operations process.

1 comment:

Six Sigma said...

Six sigma is very common used, this is a best methodology for the decision maker to referring

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