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Product Costing in Practice: The Experience of MicroSave

Author: David Cracknell
Published: July 01, 2002

Abstract:

MicroSave’s work with its Action Research Partners has clearly demonstrated that product costing interacts strategically with a diverse range of business areas, including: pricing, efficiency, outreach, the design of incentive schemes, the identification of the most suitable product mix, marketing, customer service, staffing patterns, profit centre accounting and budgeting. These strategic dimensions of costing have been little recognised to date. This note highlights the lessons learned from MicroSave’s Action Research Programmes in Eastern and Southern Africa in terms of costing and pricing of financial services.

Tags: Costing and pricing , Credit , MFIs , Financial products , Low income , Microfinance institution , MicroSave , Financial services , Savings

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