Archive for 2011
Top 6 – May 2011
Somehow “slanina” just isn’t as exciting as BACON! Products are bought because they meet a need. If you’re going to try the shotgun approach, make sure you know how to curtail your losses quickly, reload, and correct from the past mistake. “You eat eggs, you drink milk, you get a loaf of bread, and you…
Read MoreGetting Pricing Right: Pope Treads where Pilgrim Didn’t
C. Larry Pope, CEO of Smithfield Foods, Inc. has frankly told the market to expect rising pork prices to keep rising. We have seen protein producers fail in price management before, so should we believe him? This time, I believe they got the message.
Read MoreAre You Ready for ‘Milkshake Marketing?’
Harvard Business School Prof. Clay Christensen notes the extreme difficulty in creating successful new products. Each year approximately 30,000 new consumer products enter the marketplace and 95 percent of them fail. How then can product developers find that needle in the haystack?
Read More40 Years of Profitable Service: A Case Study on Southwest Airlines and Target Pricing
Most pricing strategists would agree that having a low price is not a competitive advantage in and of itself. In fact, thinking that low prices are always a good strategy for competition is deeply misguided. However, at times, targeting low prices can lead to a strategic focus which delivers tremendous results. For example, Ikea, Wal-Mart, and Southwest Airlines all have low prices and profitably take market share. In this article, we will examine the flaws of assuming low prices is a good competitive strategy, then demonstrate how one firm, Southwest Airlines, redefined the product through target pricing to win the market profitably.
Read MoreTop 6 – April 2011
Spring is nigh. Krokus přijí Kdy? Co chcěš? There is a gigantic leap between a good idea and a successful, money-making business. “Market Share has nothing to do with Profitability.” Herb Kelleher If you are serious about your new business, it will become the most important thing in your business or working life. “Unprofitable volume…
Read MoreEntrepreneurial Musings
The pattern is pretty similar: the erstwhile entrepreneur usually has a wonderful idea for a money-making business. Often they have done enough research to determine that their idea is unique and they haven’t found anybody else doing precisely what they have in mind. They are excited about their concept and seek advice on how to take it to the next step and go into business for themselves. Here is some of the advice I usually hand out to these entrepreneurs.
Read MoreH-P and Wal-Mart – The Peril of Expectations
In one of the most turbulent and bizarre weeks on Wall Street in recent memory, two of the most important indicators of the future of American business announced their earnings and quickly took a U- turns south. The two companies are Hewlett-Packard and Wal-Mart. Read why.
Read MoreTop 6 – March 2011
It’s March. We all are Irish for a Day. Drink some Guinness. Enda Kenny needs the boost to the Irish economy. Good performance isn’t good enough. What will you do next? Bundle Pains, Unbundle Gains. The mermaid is a complex design, and most customers will recognize this symbol as “the coffee Yesterday is over. Deliver…
Read MoreCosts Are Up, Now To Sell the Price Increase
Executives are living in a time of strong market disruptions that are driving costs up across industries. The recession already squeezed the potential for productivity gains to make up for the lost margins. Now, for many executives selling tangible goods, it is time to push the price lever up. How should they raise prices? Read for the two keys to raising prices successfully.
Read MoreWhy focus on pricing?
The chances are high there is very little left you can do to cut more costs and drive worker productivity. We must turn our focus towards increasing revenue in order to improve profitability. The only realistic way we can increase our price is to do so by driving our “average price” up. In other words, by selling more of the products and services our customers’ value and making sure we are priced as high as our next best competitor plus or minus the added value we bring. This article takes you through why pricing is your next most important area for focus and provides a glimpse into what we mean by raising price.
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