Featured Article
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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Prof. Haskett defines the “wheel of retailing” as the concept where retailers enter the market through low-price strategies to build market share. With the high market share, the retailer would shift its strategy from attracting new customers to increasing profit margins through higher pricing. In implementing the higher pricing strategy, the retailer opens spaced for a new lower price retailer to come into the market as the wheel turns.
Read More Negotiations are no different, although not as dramatic and not as much a matter of life or death. Not surprisingly, on occasion, they devolve into a hypercompetitive, personality-driven blood sport
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What will Gillette do? As a starter, they cut prices by 12%. Good for consumers (and society overall), bad for investors. Competition’s role is to drive prices down and quality up. This is part of the reason private capitalism is better than state-controlled enterprise.
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Our own research—that of Homburg, Jensen, and Hahn—as well as research by Hinterhuber and still other works by Liozu, repeatedly indicated firms that engage sales, marketing finance, and pricing leaders in pricing decisions outperform those that don’t. At this point, we may even call this settled managerial science.
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