Suggestion: COO Pricing Policy of Profit Mentality
Posted: Fri Feb 01, 2013 3:19 pm
Yesterday,
I decided to hire a COO, I picked the the one with no skills. She immediately begin trying to match our competitor's overall rank which resulted in her immediately reducing prices and started training in the retail stores (which were not over 80% utilization - another issue) this cause me to very quickly to start losing out on millions of dollars in profits. When I run my company, I tend to focus less on market share and more on making sure each area of my company is making a profit. I tend to take into account, supply, demand, and profit. I would be nice to have the ability to hire a COO who's main concern is making sure the business units are profitable. They would still take into account the competitive environment, product supply and demand but their overriding determination for what price it sells a product at is based on what's the maximum profit it can get based on those factors.
I decided to hire a COO, I picked the the one with no skills. She immediately begin trying to match our competitor's overall rank which resulted in her immediately reducing prices and started training in the retail stores (which were not over 80% utilization - another issue) this cause me to very quickly to start losing out on millions of dollars in profits. When I run my company, I tend to focus less on market share and more on making sure each area of my company is making a profit. I tend to take into account, supply, demand, and profit. I would be nice to have the ability to hire a COO who's main concern is making sure the business units are profitable. They would still take into account the competitive environment, product supply and demand but their overriding determination for what price it sells a product at is based on what's the maximum profit it can get based on those factors.