Archives posted in: Pricing
In Econ 101, we are taught that lower prices lead to higher sales volumes. In sales, we hear directly from customers that the prices are high and they want a discount. And in marketing communications, we learn to “sweeten the offer” in promotions and advertising. But is price really the most important driver to customer purchasing behavior?
More In free markets, competition is the norm, not the exception, and that competition will limit your latitude for pricing. When competitors lower prices or new competition enters at a lower price, many a novice manager’s gut reaction is to lower prices—but the cost of price concessions may be higher than the cost of customer losses. Experience will temper these beginner instincts over time, but there must be easier and less costly ways to identify the proper reaction to competitive price moves… Enter the Strategic Pricing Reaction Matrix.
More Rebates, discounts, and other forms of incentives are common parts of customer loyalty programs. Done right, they improve the profitability of the…
More Innovation is a great thing: it sparks our creativity, fills needs or streamlines our lives, and fuels our economy. But even the newest-to-the-world products and services face competition. We need to be able to gauge the market outlook for any of our potential offerings, from the most evolutionary to the most revolutionary…
More How are leading companies getting pricing done? What kinds of challenges should the pricing function address? Who should be engaged, and with what sorts of tools and techniques? Find out more in this interview with an industry leader.
More We’ve explored what decoy pricing is and how to recognize it, now let’s get into how to do it profitably.
More How can counterintuitive pricing and bundling help make ear additional profit? Take a look at some successful tactical moves that accomplish just that.
More Frontier Airlines has announced a new price unbundling strategy. Does that make the firm the new Spirit Airlines? David Siegel, Frontier’s CEO, says no, but judge for yourself.
More In the pricing world we often preach that there is always some alternative for your product or service. But what about a product so new to the world it isn’t even of this world? Let’s explore.
More With many large online retailers using algorithms to manage pricing, we see items change their prices multiple times over the course of a month, week, or even in one single day! Are these constant price changes good for consumers, or are they ultimately confusing, or harmful? Are they signaling us to buy? Are constant price changes communicating to consumers that these items are less valuable?
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