Featured Article

PACCAR Pricing Spineometer: 2 of 5 Vertebrae

By Tim J. Smith, PhD May 16, 2025

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 This Issue

Strategic Movements: March 2018

By Tim J. Smith, PhD March 26, 2018

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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The Process for Pricing Innovation

By Tim J. Smith, PhD February 23, 2018

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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When Shortage Is Strategic

By Kyle T. Westra February 23, 2018

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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business meeting

Changing of the Pricing Guards

By Mary DeBoni February 23, 2018

If 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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