Archives posted in: Pricing
Since August 2009, Urban Canine, located in the Wicker Park neighborhood of Chicago, has been letting dog owners use washing facilities, shampoo, ear-cleaning liquid, towels, and even blow driers for self-wash dog grooming at a price of the customer’s choosing. How has this Pay What You Want (PWYW) promotion faired for Urban Canine? I caught up with Tony Sauer, owner of Urban Canine, to understand how the program’s performance.
More Since the introduction of global distribution systems for airline tickets and hotel rooms, the commoditization of coach flights was foretold. The internet has only exasperated the problem, leading to the despairing cry that, in coach pricing, “an airline can only price as smart as their dumbest competitor.” To combat this horrid position, airlines may want to consider creating a new “Coach Plus” booking class.
More If the Great Recession is over, when will demand return? Is it time to start hiring and re-investing in the business? Should an executive cut further given the low level of demand? Or, even worse, is it time to close shop and look for greener pastures? In this article, we look at the changes in demand driven by the recession, and its implications for corporate strategy during the “new normal” recovery.
More In late October, Wal-Mart kicked off the most devastating book price war in a decade by selling its 10 most anticipated hardbacks for $10 a piece when pre-ordered online. Hours later, Amazon picked up the gauntlet and declared a defensive stance with matching prices. Wal-Mart lunged back on the offensive with a price cut to $9. Within a day, Amazon responded with a Prise de Fer by also moving to $9. The war is on. Read how it must end.
More By most indicators, the major economies of the world are coming out of the deepest global recession a lifetime. Yet, the recovery is far from a return to pre-recessionary trends. Executives might be hoping for return to strong growth, yet most of should expect a tepid climate at best. How should they react? Read on.
More In late August, Starbucks (SBUX) raised their prices on several more complex beverages while lowering them for more basic drinks. Responses from bloggers have been overwhelming negative. Did Starbucks misjudge their pricing power or are the pundits punching thin air?
More In September of 2009, JBS SA, a Brazilian beef giant, indicated intentions to purchase Pilgrim’s Pride Corp. Perhaps this will write a new chapter on Pilgrim’s Pride.
More Now that the recession seems to be ending and the slow recovery process is under way, a new vision of the post-recession economic environments is beginning to take shape. And, the picture is a lot different than it was before the economy’s free fall.
More The current recession has been longer, deeper, and generally more damaging than any other since the great depression. As we move past the recessionary scramble to survive and into some semblance of a recovery, no intelligent executive should expect things to return to the way they were. Research into customer behavior is showing two general trends: (1) Demand is not only generally lower, but also the demand that does exist is at a lower price point. (2) This shift in customer demand and preferences is likely to persist for the foreseeable future.
If the world has changed, so must strategy:
Choice is good, more choice is better … or is it? Is it always better to offer customers more choices, or should companies restrict the choices available to customers in some situations?
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