Featured Article
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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In Freshman Land, economic price optimization can be done with simple models and equations. But Freshman Land doesn’t reflect reality, and hence we have to move to the next level. We have to have the right mental model of demand.
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“If there is a Volkswagen Way, it is to be determined, diligent and attentive to detail, with a glint of ruthlessness.” VW…
Read More What would it be worth to you to have 300 excited, engaged professionals listening to your firm’s message and services while interacting…
Read More In the age of big data, sales velocity has become a metric for guiding pricing decisions. Pricing software vendors all cite sales velocity as an important factor in guiding pricing decisions. Fortune 500 and mid-tier firms alike are known to practice it. But what does velocity-based pricing mean? Why should sales velocity influence pricing decisions? How should firms use sales velocity to inform pricing? And are there serious pitfalls to this approach, or is it a sound business practice?
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