Archives posted in: Pricing
“You cannot sell on value to everyone. We realized this hard fact of life after a draining annual negotiation with a major Chinese OEM (let’s name them Firm X). At the negotiation we were fighting for multiple lines of businesses.” So what can you do? A closer look at B2B price segmentation on buying behavior.
More What decisions should the pricing function be making? Where should a corporation position the pricing function? How should the pricing function be structured? We have been asking this question for past two decades but still don’t have a definitive answer nor a standard template. Why? What is so odd about pricing decisions that makes organizational design choices regarding the pricing function difficult?
More SaaS, DaaS, IaaS, and other “X-as-a-Service” business models are proven market disruptors in information technology industries. Executives at enterprise IT solution providers are creating, adapting, or adjusting to competitors’ XaaS business models. But successfully implementing an XaaS business model requires a new approach to both pricing and revenue capture for IT services. What is that new approach?
More In traditional sense “discrimination” is a word with a negative connotation. However, in the pricing context, by discrimination I mean that I will make some customers pay more and some customers pay less for the same product. However that is pure discrimination and by no means an art. Discrimination becomes an art only when all the subjects concerned accept the price they pay without a grudge.
More Outerwall Inc. the owner of the Redbox downgraded their performance guidance tipping off a 13% decline in market capitalization. Did investors overreact? And what caused the poor performance in the first place?
More “Discrimination” is a charged and highly sensitive word in the English language, but is it really that bad when it comes to pricing?
More Despite abundance of available and accessible literature, value-based pricing (VBP) as a concept remains mystified. The key reason is the difficulty of implementation. This article’s aim is to provide the reader a concise review of the ‘do’s and ‘don’t’s of VBP.
More Who should oversee pricing decisions? Marketing? Sales? Finance? Research by Homburg, Jensen, and Hahn showed it was none of them, all of them, and it depends.
More When selling things that go together, should the company offer discounts on the individual parts or the whole shebang? Sourav Ray, Charles A. Wood, and Paul R. Messinger examined these questions across 650,000 daily price listings and through customer and manager surveys in a recent Journal of Marketing article. Their results have broad price-management implications.
More Kimberly-Clark Corp. (KMB) is “desheeting” its products to improve profitability. Weber Stephen Products LLC avoids price promotions and markdowns on their grills, and yet maintains a dominant market position. These are two rather disjointed activities but they both appear to fall afoul of the suggestions given in a recent Wall Street Journal article by Professor Ailawadi of Tuck and Professor Farris of Darden. Are Ailawad and Farris wrong, are the companies wrong, or can both pairs be right?
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