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Companies that are just beginning to build a pricing team should initially focus on defining the first year’s problems the team must address. Is it a price execution, discounting, setting, or strategy challenge, which most needs to be addressed? In some cases, the performance metric should be something correlated to profits, revenue, and share.
More Disputing the economic turbulence over the last decade, the BrandZ ratings show that most brand categories increased in value. Leaders were fast food and technology. Seven categories doubled their values—fast food, technology, beer, apparel, telecom, soft drink and retail.
More Whereas airlines are a particularly visible example of an industry struggling with price structures and value offerings, every company in every industry should pay close attention to their customers and what their customers value. Airlines are a particularly visible example of an industry struggling to think creatively about how best to capture the right price for the value provided.
More If a customer doesn’t need to make design changes to change the chip in a socket they are likely to continuously engage with multiple competing suppliers – not just to get the best price but also to secure supply. In fact in some cases customers are reluctant to design in proprietary chips, as they believe that having a single supplier for a product is very risky!
More The pricing software revolution is in full swing so who needs people anymore? Tim J. Smith, PhD takes on the thorny question of the information revolution impacting entry level and mid-tier pricing jobs and actually finds good news.
More For a company, a socket means a business. When they talk about winning a “socket” they mean winning a new business. For example let’s say a product uses a microcontroller – all microcontroller companies would be fighting to win the microcontroller socket inside that product and all other such products that use a microcontroller.
More According to Reinert, “I’m interested in how ideas reflect but also change economic realities – and how ideas can translate into policies.” He adds that he is intrigued by the lasting power of Franklin’s treatise on industry and frugality and its influence on capitalism, as we know it today.
More At a certain level, the method of accessing a certain music track should be a commodity — it is the track that matters, not the delivery mechanism. Instead of differentiating on price, platforms are trying to do so with exclusive artist agreements and various extras for the consumer, as well as additional marketing support for the artist.
More Join Tim J. Smith PhD in a new video blogging series covering all things pricing. From Hertz, big oil, airline price gouges and Zulily to homemade soda and Gucci, step into a vlogosphere dissecting what’s affecting prices, the economy and you.
More With recovery in job security and wealth, and having successfully survived the worst recession in most of our lifetimes, truck buyers are in a better position and mind-frame to spend. Moreover, since many blue-collar entrepreneurs spend a significant part of their day driving their truck, and it is normal for people to want their working environment to be comfortable, they are willing to spend for luxury work truck.
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