How does one arrive at a competitive pricing strategy for a multi-service practice where there are no specific products in question?
If your question is competitive pricing of services then utilize ABC (Activity Based Costing) to determine the Cost per activity related to the service. Accumulate all such activities into a package and arrive at Cost per Package. Analyze the overall revenues that packages may stream in discounted over the next three years. You now have two points of Play a) Cost per package b) Overall discounted cost per enhanced package. Is there a rule of thumb for office rent or lease per gross income? There is a GRM (Gross Rent Multiplier) that compares the total rental/lease income to the value or price of the property. The price can run 8 to 10 times the gross income, but that can vary based on market conditions, interest rates, management, building type, quality. Capitalization Rate (cap rate) is a more comprehensive way of evaluation, but if the GRM is known for a building type and location, you can quickly determine a ballpark value. Is there a difference between corporate profit maximization
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