Archives posted in: Pricing

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Information Is Currency

By Spider Lockhart December 3, 2012

“Sellers don’t control their product, quality, marketing, customers, competitors, or pricing. What they do control is, what they know, and how and when to apply what they know.“ Read a controversial approach to sales and price quoting from Spider Lockhart and ask yourself: when should prices be transparent and when should they stay opaque?

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Promotional Pricing…click click boom

By Curry W. Hilton November 1, 2012

After engaging in a brief conversation on “promotional pricing” with a business operations executive at a global manufacturer in consumer goods industry, I was inspired to address some misconceptions discussed and provide further insight on how firms in the B2B space implement profit-enhancing promotional pricing tactics.  First of all, promotional pricing should be viewed as a means to price segment according to consumers’ willingness to pay, not as a pure promotional strategy.  Case in point, consider Remington Arm’s Promotion of Nitro-Steel Load.

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Best practice for starting Strategic Pricing

By Steve Wilkins November 1, 2012

Declining profit margins are forcing companies to find new ways to improve profitability. Most companies have been through the cost cutting and strategic procurement processes and are now looking for the next level to pull. Strategic pricing is starting to become more popular as more senior executive have begun to leverage the power of pricing.

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Avoiding Price Wars

By Curry W. Hilton September 4, 2012

The negative impact on industry profit due to price compression from firms engaging in price wars can possibly be avoided by a better understanding of strategic games. Observing competing firm’s historical behavior and current price announcements offers valuable indications of future actions. Modeling such strategies in a game theoretical scope allows for more informed pricing decisions and possible profit saving maneuvers.

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The Importance of Negotiating Power in Pricing: The Principled Negotiation Approach

By Curry W. Hilton August 1, 2012

The national bestseller, Getting to Yes: Negotiating Agreement Without Giving In (2), by Roger Fisher and William Ury offers a unique applied approach to understanding how to reach a “wise” agreement. According to Fisher and Ury, a wise agreement improves both parties relationship by offering a fair and lasting solution

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Setting the Price in the Face of Competitive Substitutes – An Economics Approach

By Curry W. Hilton August 1, 2012

Economic consumer theory represents how a demander allocates consumption behavior between two goods to maximize utility under constraints such as prices, time, and income. Consumer theory rests on the simple foundation that individuals are utility maximizing entities with the driven purpose to make tradeoffs depending on preferences and constraints. In this article, Curry Hilton examines price behavior for two substitutable goods.

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Best Buy & J.C. Penney: Strategically Confronting Dislocation and Price Pressures with Relevancy

By Tim J. Smith, PhD June 1, 2012

Declining profits and hammered by investors, Best Buy and J.C. Penney are having a tough go. Some seem to believe traditional brick and mortar retailers are circling the drain as US consumers switch to online channels. But take a deeper look, and you will find that both show promise.

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Monsanto & the Global Glyphosate Market: Case Study

By Curry W. Hilton June 1, 2012

How did Monsanto address the expiration of their patent on glyphosate and the entrance of Chinese competitors? What were the results of their actions?

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SPIN Selling and Value-Based Pricing – Friends or Foes?

By Tim J. Smith, PhD April 1, 2012

Is pricing out of touch with the market? Are salespeople frittering away profits? Are these two groups really at war with each other? Or, are they aiming for the same goal but language differences are preventing proper teamwork? Let’s review SPIN Selling from a pricing perspective.

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Going Once, Going Twice, Sold! The QuiBids Marketplace

By Curry W. Hilton April 1, 2012

Sitting atop an old bushel basket, the aroma of aged tobacco wafting through the air, and the loud jumbled racket of an auctioneer rattling off lot prices, was the recollection of my first auction experience. Reminiscing over nostalgic memories of accompanying my grandfather to the American Tobacco Company sale in Reidsville, NC, at the ripe age of 6 years old will be forever engrained in my mind. Not until a graduate school game theory class evoked my long lost love of auctions, did I start thinking about the efficacy of auction marketplaces allocating resources among consumers.

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