ABSTRACT
Responsibility for the price charged was very much with the mill salesman. The price a salesman could quote was closely tied to the figure set by a small group of managers at head office; it was also influenced by the mixture of products the mill was equipped to manufacture. There is no doubt that there is a great deal of satisfying in making pricing decisions, and almost certainly much more in making other decisions. It must be recognized that pricing decisions are just as liable to be affected by human and organizational factors as any other aspect of a business. One immediate move might be to use sensitivity analysis to show what the benefit would be from acquiring particular information. The way in which information was analysed for pricing decisions can be summarized most conveniently by distinguishing three situations. These are where the analysis was carried out: by one man; by a small group; and by a large group.
