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Management review
The margin arithmetic behind everyday low pricingHarvard Business Review, March and April 1994
A management review article examined everyday low pricing and why broad price cuts do not always deliver the profit they promise.
The piece looked at the arithmetic linking price, volume and margin, showing how a simple strategy can quietly erode returns if the volume response is misjudged.
It remains a useful counterweight to the assumption that lower prices always win more than they give away.
The scholarly version of this work appeared in the Journal of Marketing.
Published by Harvard Business Review. Outlet names and dates are recorded here for reference; the wording of this note is original to this archive.
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