Featured Article

IDEX Pricing Spineometer: 2 of 5 Vertebrae

By Tim J. Smith, PhD January 9, 2025

IDEX, a global applied solutions provider, had a mixed Q3 2024. Revenue rose 0.6% to $798 million while earnings before interest and taxes fell 6.1 % to $168 million over the same period last year. A review of IDEX’s 30 October 2024 earnings call and associated financial reports provided insight regarding the importance of pricing on performance. IDEX is a diverse and complex business. It has three reporting units, Fluid & Metering…

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In This Issue

Top 6 – December 2011

By Tim J. Smith, PhD December 7, 2011

To Marek Matějka, herec, dobrý muž, i camarad, I will miss our zábavný večer. 2 October 1974 – 25 November 2011 Not…

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The Merits of Underdog Positioning

By James T. Berger December 7, 2011

For some reason, consumers often find the underdog more attractive than the category leader, according to research done by Harvard Business School Professor Anat Keinan. In this article, we examine some of the drivers that makes underdog marketing successful.

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Effective Price Segmentation Techniques

By Curry W. Hilton December 7, 2011

In order to fully capture potential profit contributions, a firm must be able to successfully execute price segmentation tactics on a consistent basis. Faced by a dynamic market, firms require regular price maintenance to ensure segmentation hedges remain effective. Efficient price discrimination techniques that involve limited cost to identify market segments and mitigate the existence of a secondary market, truly contribute to a firm’s bottom line. Understanding the theoretical concepts of price discrimination discussed in a standard economics textbook only scratches the surface of the knowledge needed to implement a profit generating pricing strategy. This article will attempt to provide the connection between pricing theory and where the rubber meets the road.

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Killing the Golden Goose – Part 2

By James T. Berger November 3, 2011

Reed Hastings, the CEO of Netflix (NFLX) has cemented his position on my Hall of Shame. Whether hubris (outrageous arrogance) or stupidity, Netflix has taken an ill-advised price increase and transformed it into a runaway train that threatens to jeopardize the company. The story began when Reed Hastings and his management team, after doing apparently no market research, decided to raise their prices by approximately 60 percent. This action was taken amidst a continuous stream of record earnings, customer loyalty and a growing customer base.

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