Pricing is one of the most powerful ways to improve – or destroy – profits. This course can help you improve the pricing practices at your company or allow you to help your clients make better pricing decisions.

A Deloitte pricing effectiveness benchmark study found that: "Companies that actively pursue pricing as an important part of their strategy typically outperform industry peers on several financial metrics… Companies that are pricing leaders are 26 percent better at managing true profitability." This course focuses on financial management and profitability analysis of pricing.

The course is comprised of three sections. Each section looks at pricing from one of three perspectives:

  • Section 1 - Pricing Profitably Analysis and Processes: Internal analysis and processes
  • Section 2 - Pricing Profitably for Your Product's Value: Customer perceptions and actions
  • Section 3 - Pricing Profitably in the Face of Competition: Competitive pressures

Here’s a summary of each section of the text course:

  • Pricing Profitably Analysis and Processes: I explain how to analyze pricing decisions to anticipate their profit implications. Cost-plus pricing is a popular pricing methodology, but I explain its weaknesses. I also cover how many parts of a company can work together to improve pricing.
  • Pricing Profitably for Your Product's Value: Price is a function of the value provided to customers. This course focuses on customer perceptions of value and their willingness to pay for that value. You'll learn the calculation for value-based pricing. I also touch on pricing ethics.
  • Pricing Profitably in the Face of Competition: The focus of this course is how other companies can impact prices. I show how to analyze the profitability at stake by responding to competitor pricing. You'll learn common pricing strategies relative to market pricing. Finally, I'll show how to identify and reduce poor discounting practices.

I show examples of calculating the changes in profitability from different pricing decisions. You’ll learn how to calculate the costs of price cannibalization. I also show how to use following analysis techniques for pricing decisions:

  • Cost-volume-profit analysis
  • Break-even analysis
  • Sensitivity analysis
  • Two-variable data tables

NOTE: This course is also available in Video Based format (3 parts):

Course Key Concepts: Pricing, Profitability Analysis, Management Accounting, Pricing Strategies.

Learning Objectives
  • Recognize and recall key concepts of competition-based pricing, value-based pricing, and cost-based pricing.
  • Identify price cannibalization.
  • Recognize common pricing strategies.
  • Recognize break-even analysis.
Last updated/reviewed: February 01, 2024
1 Review (2 ratings)


Anonymous Author
This was a comprehensive explanation on pricing and and the various ways to analyze and set it. Would be a really good course for anyone in business regardless of the industry you are in.

Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Pricing for Profitability (Text Based Course)PDF
  Course ResourcesPDF