Archives posted in: Pricing
Having a long list of prospective buyers may be comforting for a salesperson, but a highly applied sales methodology for business markets suggests salespeople should only pursue prospects that fall within two out of four response modes. What are these response modes? How do they affect price performance? And why should salespeople only pursue two of them?
More Since childhood, we have heard about economics. Now that we are adults with jobs, it seems like using an economics for pricing would be wise. But, as grown-ups, we also know that things are never as simple as they appeared when we were kids.
More Which is a better price: $15.99 or $16.49? To answer this question, we have A/B testing and price optimization, but this approach doesn’t work all the time.
More JC Penney’s CEO Ron Johnson has had a tough go at it. Stock valuation is down roughly 40% since the time Johnson took over. Customer sales are down 20% from last year. Some are calling for his resignation. But before we chant “off with his head” with the Twitterati, let’s see if we can’t help him find a way out of his quandary.
More In Freshman Land, economic price optimization can be done with simple models and equations. But Freshman Land doesn’t reflect reality, and hence we have to move to the next level. We have to have the right mental model of demand.
More In the age of big data, sales velocity has become a metric for guiding pricing decisions. Pricing software vendors all cite sales velocity as an important factor in guiding pricing decisions. Fortune 500 and mid-tier firms alike are known to practice it. But what does velocity-based pricing mean? Why should sales velocity influence pricing decisions? How should firms use sales velocity to inform pricing? And are there serious pitfalls to this approach, or is it a sound business practice?
More Theoretically, if you know the elasticity of demand you can optimize the price through economic price optimization. You may think that this approach would give the best price in practice as well since the word “optimal” is implied in its name alone. But dig beneath its sexy title you will generally find an ugly mess. So what do we do with it?
More The much-anticipated Bombardier CSeries commercial airplane line provides a uniquely positioned offering, boasting 20% fewer CO2 emissions, 20% fuel savings, and 15%…
More A study conducted by Reims Management School (RMS) reveals that consumers are often put off by promises of lowest prices which are coupled with high refund guarantees – contrary to the usual strategies of many top retailers.
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