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When it comes to paying top executives, companies love to tie compensation to metrics like revenue growth and market share expansion. After all, these are clear indicators of a company’s size and reach. But while capturing market share can tell a story of growth, they’re not always the best measure of financial health. For example, Uber failed to return a profit for many years, finally turning profitable $1.887 billion in 2023, first…
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Not only will the American economy be hurt, these actions by an American President with very limited knowledge about economics, will affect the economies of many nations.
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In his book Pricing: The Third Business Skill, EJ Bouter made the case for pricing to become its own department, right next to finance, marketing, sales, and operations in chapters 14-16.
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A good pricing decision is two-fold: One defines an aspirational list price and a commercial policy that deducts from this list price known discounts, which lead to the expected target prices by customer segment and perhaps channel.
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Shortages can be signals of excitement, quality, even virtue. “Sold out” is a powerful story for the right kind of product. Musk’s goal isn’t optimizing his earnings from flamethrowers. His goal is building excitement and investment around his companies. Selling out a flamethrower, and even a hat, does that in a big way.
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