Rudy Zeidler

WORK HISTORY

EDUCATION

ABOUT RUDY ZEIDLER

WHAT WE DO OptumPricer increases the manufacturer\'s profits by setting each product\'s price above its net profit breakeven level. CHALLENGESProfitable product pricing is a prime manufacturing management challenge. To high reduces the potential market, and too low results in lost profit. A company\'s net profit, as seen on its P&L, is the sum of its product\'s net profits, but until now, no one knew how to calculate an individual product\'s net profit. Manufacturers miss profits by pricing products with traditional non-net profit pricing methods (i.e, Gross Margin, Cost Plus, Competitive pricing). These outdated methods ignore the major effect on a product\'s profit by not allocating companywide costs to it. Per GAAP: a Product’s Net Profit = Price - COGS - Allocated Companywide Costs. But GAAP doesn\'t explain how to allocate management compensation, health benefits, engineering, marketing, utilities, etc, to each product. These non-net profit-derived prices can result in negative net profits and vulnerability to profit-killing discounting.SolutionOptumPricer uniquely creates mini-product P & Ls to allocate the companywide costs to each product and calculate the net profit breakeven price. A product\'s price should be set at what the market will bear but always above its breakeven price. CONTACT INFORMATION 20••••••18 | r••••••••@optumpricing.com