Archives posted in: Pricing

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Price Discrimination by the FAA

By Tim J. Smith, PhD February 1, 2008

Bring up the topic of price discrimination, and you are sure to find at least someone state that it isn’t fair, perhaps…

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Price Bundling to Profit

By Tim J. Smith, PhD January 1, 2008

Price Bundling to Profit What is distinct about price bundling vs. other types bundles?  Is price bundling just another form of discounts…

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Add-ons or Version

By Tim J. Smith, PhD November 1, 2007

When should a C-level executive pursue an add-on vs. a versioning strategy?  What makes one more attractive than the other?  Should every…

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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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