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Why Peter Drucker Is Wrong About Price-Based Costing | SBI Growth

The early 1990s saw the stumbles of giants like General Motors and IBM. In response, business management authority Peter Drucker published a diatribe in the WSJ on “the five deadly business sins—avoidable mistakes that will harm even the mightiest business.” Three out of Drucker's five deadly sins were related to pricing, meaning bad pricing is both treacherous and ubiquitous.

One of Drucker's sins is the practice of cost-driven pricing. Instead, he proposes what he calls “price-based costing”:

January 6, 2025 15 min read
Why Peter Drucker Is Wrong About Price-Based Costing | SBI Growth

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