Archives posted in: Pricing

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Extending the Power of the Price Waterfall to Customer Value

By Tim J. Smith, PhD October 1, 2007

Price waterfalls, by definition, deal with price.  While price and value should be intimately related, we know this is not always true. …

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Fire Sale or Hold Inventory? Hovnanian Enterprises, Lennar, KB Homes

By Tim J. Smith, PhD October 1, 2007

When demand for a product decreases dramatically and the company overshoots production requirements, what should executives do?  Hold prices and be patient…

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Is GM Being Vigilant in Transaction Price Management?

By Tim J. Smith, PhD September 1, 2007

It is said that the difference between an economist and a pit-trader is that the economist lets newspapers pile up on their…

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Dancing Together: xBox, PS3, and Wii

By Tim J. Smith, PhD September 1, 2007

In the gaming industry, as in other technology driven industries, products are enhanced and prices evolve rapidly.  In 1991, D’Aveni characterized this…

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Strategic Implications of Leegin Price Floor Ruling

By Tim J. Smith, PhD August 1, 2007

In a landmark case, the US Supreme Court removed a barrier to vertical price floors in a 5-4 ruling on Leegin v.…

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Price Discipline in Declining Markets: Coffee Roasters

By Tim J. Smith, PhD August 1, 2007

When industries decline, it is tempting for competitors to make a dash for regaining lost volumes by slashing prices.  But, are price…

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Price Adjustments to New Information: Sony PS3

By Tim J. Smith, PhD August 1, 2007

With experience, professional pricers instinctively learn to laud price increases and denigrate price decreases.  Sometimes though, it is a good idea to…

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Symantec’s Non-Price Response

By Tim J. Smith, PhD July 1, 2007

Symantec continues to battle Microsoft’s foray into the computer security software market through a public relations campaign, yet they have not responded…

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How Price-Per-Application Can Lead to Mutual Self Destruction

By Tim J. Smith, PhD June 1, 2007

Selling software as a service and pricing it on a per-application has become the vogue thing to do for many good reasons.…

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Is GM Really Focused on Value or Low Prices?

By Tim J. Smith, PhD April 1, 2007

Is GM reverting to MSRPs and high promotional discounts, or is it serious about its strategy to focus on value?  We put…

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