ACCOUNTANTS HAVE TO TAKE BACK PRICING

CEOs and consumers are to blame.

Now that the blame is done, let’s get down to how we got here and what we can do.

Circa 1990 Sales and Marketing Departments started taking over pricing.  Accountants who painstakingly calculated every fraction of a cent that went into a product were disregarded in pricing and only asked to calculate variances to see how much the company was losing and how much cheaper it would be if it was made overseas.  CEOs gave control of  price setting to Sales and Marketing.  CEOs made the ultimate  decision on price ignoring what it was doing to employees and the quality of the product.

Okay, consumers, this is the role you played in the closing of stores and manufacturing plants.  The Clover store near us stocked and sold products Made in the USA but they were more expensive.  Consumers want to buy cheap products so they can keep more money for other things.  What they don’t realize is that the manufacturing plant they work at supplied the more expensive product. By not buying their US make sneakers, they played a role in closing all sneaker manufacturers in the US.

This is the vicious cycle.  Consumers demand cheap. Companies can only satisfy consumer lower price demand by buying overseas.

Two things have to happen for companies to be successful in the future.

1. Pricing Product with Profitability (The new PPP Plan)

CEOs need to send a memo that the accounting department in your company will be setting the selling price.  The Sales and Marketing Departments will no longer do competitive marketing pricing.

2. US Consumers will have to Accept that they have to pay premium pricing for US made products.

The mindset must change from saving money for me by buying cheap to buying quality US Products that save my neighbor’s Job.

Consumers must look at the whole picture.

The whole cause and effect of their purchasing choice.

I will buy sneakers and save your job if you buy local ham to save my job.

You know what to do.