Archives posted in: Pricing
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.
More 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.
More 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
More 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.
More 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.
More How did Monsanto address the expiration of their patent on glyphosate and the entrance of Chinese competitors? What were the results of their actions?
More 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.
More 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.
More There are three key questions that must be asked for every pricing problem. Each must be asked from the customer’s perspective, not your own. Number 1: What is the alternative? Number 2: Are you better or worse? And Number 3: Why should I expletive care?
More Prices are too high for our customers. Sales is giving away our product. We have heard these claims. Many times. These arguing points between the professionals who manage customers and those who manage prices have been fought over for aeons. Yet which group is right?
To address the issue of pricing and account management, let us leverage the research by Miller and Heiman into the creation of thought leadership in pricing.