Posts by: Tim J. Smith, PhD
$700 is the price a couple would pay for the best seats to see Hugh Jackman Back on Broadway this month. With a runaway hit, producers have raised prices several times. Orchestra seats that were priced at $155 are now priced at $175. Premium seats that were priced at $250 are now priced in the range of $275 to $350, depending upon demand for specific performances. Their decision to use dynamic pricing has placed Hugh Jackman’s essentially one-man-show in the top earner position on Broadway with roughly $1.5 million in ticket sales for the week ending November 20th, 2011.
With pricing success like this, one can suspect that more executives may benefit from considering the value of dynamic pricing.
MoreTo Marek Matějka, herec, dobrý muž, i camarad, I will miss our zábavný večer. 2 October 1974 – 25 November 2011 Not…
More“The only profit center is the customer” Peter Drucker Corporations are psychopaths? Pricing errors, specifically price communication errors, are deadly for career…
MoreWhy do firms exist? Why should society allow corporations to exist? What moral reason should we, as a society, allow firms to exist? At the most fundamental level, the Occupy movement is asking this question. Shouldn’t we be addressing this?
MoreSalespeople abuse discounts. Pricing is the sales destruction department. Well, which group is right and must they keep fighting? In this article, we explore the role of price segmentation in strategic account selling.
MoreIn America, we teach our kids how markets work at a very early age. It’s called Halloween. Pricing vs. Sales – “Can…
MoreGroupon has shown the world a new way to do coupon promotions, but is it any better than traditional couponing? In this article, provide an academically proven and industry best-practice approach for evaluating coupon promotions, be it Groupon or any other type of couponing.
More“Find the problem that other people have ignored.” Scott Cook, co-founder of Intuit Inc. August 18, 2001, WSJ. A good idea needs…
MoreSummer Heat Beats Play Ball! If only ticket sellers would! The boys of summer shop ‘til they drop Mother knows best! And…
MoreLast year, a Malaysian executive told me that she must compete on price because Malaysians only buy on price. This year, an Indian executive told me that he only sells commodities because that’s what his nation buys. On both occasions, I countered with a strong push to find ways of meeting their customer’s needs better to reduce downward price pressures associated with selling commodities.
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