Posts by: Tim J. Smith, PhD

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Back to School Shopping – and Selling

By Tim J. Smith, PhD August 11, 2011

According to Ypulse research, teens and college age men spend more per shopping trip than young women ($94 vs. $81)? That’s because guys want to get in and out of stores fast, and avoid shopping for awhile.

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Top 6 – July 2011

By Tim J. Smith, PhD July 14, 2011

If the price fits, then the suit fits! If my Brand is getting bigger, why are my profits getting smaller? Coupon day!…

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Abercrombie & Fitch: To Price Promote or Not To Price Promote?

By Tim J. Smith, PhD July 13, 2011

At the beginning of the Great Recession, Abercrombie & Fitch (ANF) had a clear policy against price promotions.  By the end of the Great Recession, price promotions were clearly part of Abercrombie & Fitch’s retail strategy.  What changed?  Was Abercrombie & Fitch’s price promotion policy shift simply another shoot-from-the-hip shotgun response to declining sales, or was it a needed change to improve growth and profits?

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Top 6 – June 2011

By Tim J. Smith, PhD June 19, 2011

Summer time! Shoeless and barefoot in the grass. Starbucks who, gotta get my Dunkin on! Vacation time…definitely fly Southwest Airlines, Or definitely…

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Top 6 – May 2011

By Tim J. Smith, PhD May 17, 2011

Somehow “slanina” just isn’t as exciting as BACON! Products are bought because they meet a need. If you’re going to try the…

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Getting Pricing Right: Pope Treads where Pilgrim Didn’t

By Tim J. Smith, PhD May 17, 2011

C. Larry Pope, CEO of Smithfield Foods, Inc. has frankly told the market to expect rising pork prices to keep rising. We have seen protein producers fail in price management before, so should we believe him? This time, I believe they got the message.

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40 Years of Profitable Service: A Case Study on Southwest Airlines and Target Pricing

By Tim J. Smith, PhD April 6, 2011

Most pricing strategists would agree that having a low price is not a competitive advantage in and of itself. In fact, thinking that low prices are always a good strategy for competition is deeply misguided. However, at times, targeting low prices can lead to a strategic focus which delivers tremendous results. For example, Ikea, Wal-Mart, and Southwest Airlines all have low prices and profitably take market share. In this article, we will examine the flaws of assuming low prices is a good competitive strategy, then demonstrate how one firm, Southwest Airlines, redefined the product through target pricing to win the market profitably.

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Top 6 – April 2011

By Tim J. Smith, PhD April 6, 2011

Spring is nigh. Krokus přijí Kdy? Co chcěš? There is a gigantic leap between a good idea and a successful, money-making business.…

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Top 6 – March 2011

By Tim J. Smith, PhD March 2, 2011

It’s March. We all are Irish for a Day. Drink some Guinness. Enda Kenny needs the boost to the Irish economy. Good…

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Costs Are Up, Now To Sell the Price Increase

By Tim J. Smith, PhD March 2, 2011

Executives are living in a time of strong market disruptions that are driving costs up across industries. The recession already squeezed the potential for productivity gains to make up for the lost margins. Now, for many executives selling tangible goods, it is time to push the price lever up. How should they raise prices? Read for the two keys to raising prices successfully.

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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.