Posts by: Tim J. Smith, PhD

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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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Top 6 – August 2014

By Tim J. Smith, PhD August 11, 2014

“If you know the enemy and know yourself, you need not fear the result of a hundred battles.” –Sun Tzu, The Art…

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Competitive Price Pressures? How to React and Why.

By Tim J. Smith, PhD August 11, 2014

In free markets, competition is the norm, not the exception, and that competition will limit your latitude for pricing. When competitors lower prices or new competition enters at a lower price, many a novice manager’s gut reaction is to lower prices—but the cost of price concessions may be higher than the cost of customer losses. Experience will temper these beginner instincts over time, but there must be easier and less costly ways to identify the proper reaction to competitive price moves… Enter the Strategic Pricing Reaction Matrix.

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Top 6 – July 2014

By Tim J. Smith, PhD July 7, 2014

“Do not do what someone else could do as well as you. Do not say, do not write what someone else could…

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Are Rebates and Customer Loyalty Programs Illegal? A Strategic and Legal Case Study of Intel and Eaton

By Tim J. Smith, PhD July 7, 2014

Rebates, discounts, and other forms of incentives are common parts of customer loyalty programs.   Done right, they improve the profitability of the…

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Top 6 – June 2014

By Tim J. Smith, PhD June 9, 2014

Consistently profitable decision-making isn’t based on luck. It isn’t based on being or having the smartest person on your team, either. It’s…

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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.