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PACCAR, a multinational truck, parts, and financing company, had a negative 2024. Examining PACCAR’s Truck, Parts, and Other business specifically, revenue fell 5% to $31 billion and earnings before interest and taxes fell 17% to $4.5 billion over the last year. (This article excludes PACCAR’s financial services business and makes no comments regarding how pricing should be managed in that line of business.) A review of PACCAR’s 28 January 2025 earnings call…
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Clear communication about surge pricing is good customer service but without conveying its benefits, Uber is increasing the price sensitivity of its riders. This is a well-known effect of overemphasizing price in marketing communications. But price is only one reason that customers choose Uber. Why not focus on the benefits of surge pricing?
Read More Getting back to the shop-floor example: what if you realized that you ended up buying a few million dollar worth machinery but had to retain the workforce to run the machines as per requirements? In fact you ended up renting a bigger floor to accommodate the humans and machines?
Read More The use of comparable equivalents leads to an improvement in the meaningfulness and accuracy of the benchmark approach, yet the determination of what constitutes the comparable equivalent is made by the consultant him/herself. This approach is fraught with error. Does the lawyer think too highly of him/herself or is he/she being too timid?
Read More Much of this has to do with poor economic policy, the low price of oil (upon which much of Venezuela’s exports depend), and the strong dollar. In such situations, dollars become even more valuable to hoard, which in turn creates more inflation in the bolivar, leading to a positive feedback loop. But how does this lead to shortages of something as basic as toilet paper?
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