Posts by: Tim J. Smith, PhD
Entrepreneurs are generally entering a business landscape with less information, less skills, less resources than an established business. In fact, one should wonder how any entrepreneur can succeed against large, entrenched corporations they’re forced to share the market with.
MoreI know Elon Musk is a Silicon Valley type person, but is he being rational with distribution and price? Tesla announced in late February a plan to end all physical dealerships and move to an online-only distribution. Their justification: to reduce vehicle price to the mythical $35,000. Is this smart?
MoreWhat can a CPG control and what must be taken as a “given” from the market? Which price should a CPG use as its benchmark for comparing different channels and retailers? Which price points should a CPG attempt to manage?
MoreNetflix is raising its prices from $8 to $9 for its “good” version that allows for streaming to one device at a time and from $11 to $13 for its “better” version that allows for streaming to two devices at a time. They justify it to customers by claiming it is for the development of better content (good PR plan).
MoreBetween the highest- and the lowest-priced products, other products will be positioned. A plethora of product positions in price and benefits should be considered the norm as an industry moves from introduction, through growth, and into maturity.
MoreMoviePass pays theatres for each visit by a patron. Simply, it’s poor thinking on MoviePass’s part. Pricing Strategy, Chapters 12 and 13 would have told them this was poor thinking. Too caught up in Lemming Thinking on e-subscription services.
MoreIn order for any pricing improvement project to deliver its potential value, price governance and pricing culture must intersect. Some may want to dismiss this as “too much to take on,” but the results of addressing fundamental questions from both sectors creates the difference between the companies that slog-along and those that thrive.
MoreWhile specifics are not clear, the Swedish company Electrolux is noted to have raised U.S. prices by 10%, and is suspected to be seeking a further 4% price increase in early Q1 2019.
MoreIn this missive, I examine how companies selling to end customers through distributors and retailers can design their commercial policy.
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