...John Myrna Purpose This article illustrates how companies can render themselves vulnerable to inappropriate price comparisons if their pricing structure hides the true value of their services from customers, and offers strategies for overcoming pricing problems. Design/methodology/approach...

.... In this section, you will read about the model and some of the results it produced that shook the ground at an automotive parts manufacturer, called “Company”. In the autumn of 2000, Company needed to set prices for their products, but management knew that their current pricing model was fundamentally flawed...