Posts by: Tim J. Smith, PhD

Top 6 – January 2015

By Tim J. Smith, PhD January 19, 2015

In the long run, markets equilibrate and entropy wins. But I don’t live in the long run. I live in the here…

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Getting Pricing Done with Jesse Finch Gnehm of GE Oil & Gas

By Tim J. Smith, PhD January 19, 2015

GE has long been known as a process firm, but what processes do they use when it comes to pricing? What do pricing initiatives look like at GE Oil & Gas Subsea Systems? Who contributes to those pricing decisions? How does the pricing function fit within the larger organization? What pricing decisions does the pricing function directly engage? What techniques and tools have been found useful for pricing at GE Oil & Gas Subsea Systems? And are there any external resources that they have found particularly useful?

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Top 6 – December 2014

By Tim J. Smith, PhD December 22, 2014

Hats & Messy Hair. Wintertime in the northern hemisphere: Little kids don’t care about the hair, maybe we shouldn’t either. You can’t…

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Retail, Black Friday, and Value-Based Pricing

By Tim J. Smith, PhD December 22, 2014

Does value-based pricing work in highly competitive environments, even retail environments? When competitive discounting happens, like Black Friday, does the concept loose meaning? Let’s take a look.

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Top 6 – November 2014

By Tim J. Smith, PhD November 24, 2014

Team building and leadership have some roots in Machiavelli. If they are not following, you are not leading. At some point, team…

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The Radicalness of Value Based Pricing

By Tim J. Smith, PhD November 24, 2014

Value-based pricing aims to price offerings according to the value customers’ associate with the offering in comparison to its alternatives. This is a…

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What is Value-Based Pricing?

By Tim J. Smith, PhD October 30, 2014

Value-based pricing aims for prices to reflect the value customers associate with a product or service offering. Simple enough to state, but what does this mean?

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Top 6 – October 2014

By Tim J. Smith, PhD October 29, 2014

“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.” -Warren Buffett The…

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Top 6 – September 2014

By Tim J. Smith, PhD September 28, 2014

I was asked at Riot Fest Chicago what I did and chose “Economics” as my answer for the moment. He continued: “Micro…

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Price is Not (Always) the Most Important Driver to Customer Purchasing Behavior

By Tim J. Smith, PhD September 28, 2014

In Econ 101, we are taught that lower prices lead to higher sales volumes. In sales, we hear directly from customers that the prices are high and they want a discount. And in marketing communications, we learn to “sweeten the offer” in promotions and advertising. But is price really the most important driver to customer purchasing behavior?

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About The Author

timjsmith
Tim J. Smith, PhD, is the founder and CEO of Wiglaf Pricing, an Adjunct Professor of Marketing and Economics at DePaul University, and the author of Pricing Done Right (Wiley 2016) and Pricing Strategy (Cengage 2012). At Wiglaf Pricing, Tim leads client engagements. Smith’s popular business book, Pricing Done Right: The Pricing Framework Proven Successful by the World’s Most Profitable Companies, was noted by Dennis Stone, CEO of Overhead Door Corp, as "Essential reading… While many books cover the concepts of pricing, Pricing Done Right goes the additional step of applying the concepts in the real world." Tim’s textbook, Pricing Strategy: Setting Price Levels, Managing Price Discounts, & Establishing Price Structures, has been described by independent reviewers as “the most comprehensive pricing strategy book” on the market. As well as serving as the Academic Advisor to the Professional Pricing Society’s Certified Pricing Professional program, Tim is a member of the American Marketing Association and American Physical Society. He holds a BS in Physics and Chemistry from Southern Methodist University, a BA in Mathematics from Southern Methodist University, a PhD in Physical Chemistry from the University of Chicago, and an MBA with high honors in Strategy and Marketing from the University of Chicago GSB.