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True Pricing: Should Manufacturers Embrace It?

This article, written by Stephan Liozu Ph.D., discusses the concept of true pricing in manufacturing, an approach that incorporates not only the direct and indirect costs of production but also factors in environmental and social impacts. It emphasizes the evolving landscape of sustainability and ESG (Environmental, Social, and Governance) requirements, suggesting that true pricing aligns with organizational objectives and societal expectations by integrating costs related to environmental sustainability and social responsibility. Companies like Schneider Electric and Siemens are mentioned as pioneers in implementing sustainability-focused pricing strategies. The discussion also covers challenges and considerations companies face in adopting true pricing, suggesting a move towards more transparent and value-driven pricing models.


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