Archive for June 2004
4+1 Pricing Mechanism
When businesses charge different customers different prices, what are the determinant factors? Is this pure value-perception pricing or are underlying factors used to justify differential pricing? After reviewing dozens of pricing mechanisms in business markets, I have uncovered four plus one common factors within pricing mechanisms. The basic four are Volume, Complexity, Risk, and Delivery.…
Read MoreLegality of Price Discrimination
Are pricing mechanisms that charge different prices to different customers in business markets legal? More than any other issue, concerns of the legality of price discrimination are raised when discussing pricing mechanisms. Due to the well publicized legal cases against executive greed, predatory pricing, and outright fraud; managers and have righteously steered clear of any…
Read MoreListen to Customers – Descartes Systems Group
Founded in 1981, this public company achieved $62 million in revenue in 2003 and has over 2500 customers in 60 countries. Recently, their growth has stalled in parallel with the tech downturn. However, as the RFID market and supporting solutions grows, their potential should change. The Descartes solution tracks the status of inventory in transit.…
Read MoreHigh Five of Direct Mail
Getting direct mail to produce business results requires addressing five qualitative issues according to Lewis R. Elin. He is the former owner of Topps Mfg. Co and successful user of direct mail and catalogues in building businesses. These are Benefit, Verisimilitude, Seduction, Why, and When. The following is from his notes and makes a good…
Read MoreValuing Direct Mail
Using direct mail to prospect for new business presents a decision dilemma for salespeople and business marketers. On one hand, it is an attractive approach of quickly contacting potential customers to promote an offering. On the other hand, most businesses have a poor track record in driving actions with direct mail. The decision to use…
Read MoreMerge with Similarly Market Focused Companies – Marimba
Founded in 1996, this public company achieved $40 million in revenue in 2003 and has over 450 customers including name brands such as Music Match and Electronic Arts. Marimba provides a solution for managing software inventory and updates. Companies seek their solution for security patch and anti-virus management, software license compliance, and operating system migration.…
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