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Now, standing with tenuous assurance at best on that direct cost base, how high dare we reach for a price? What is the price elasticity of the customer's value perception? Upward? Downward? Where will our competitor come down on price? Will we get a 'second look?' At least we're asking the right questions, aren't we? That's half the solution. We're not simply marking up some figment of manufacturing or full absorption rate! Oh, for some magic box! Dear Peter Drucker, where are you now when we need you?
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