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 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.
Read MoreA 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.
Read MoreShortages 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.
Read MoreIf you can successfully explain why implementing a value-based pricing strategy will be instrumental in moving your company towards their goals and targets, you should be in a pretty good position to get buy-ins.
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