Archives posted in: Selling

Strategic Movements: June 2018

By Tim J. Smith, PhD June 28, 2018

With new competitors Norwegian Air Shuttle and JetBlue Airways entering the market, and the addition of smaller 200-seat planes, capacity on transatlantic flights has grown by more than 20% since 2013. That is comparable to a 4% capacity increase year for the past five years. Did demand increase at this rate as well?  Expect pricing pressure to increase as new entrants attempt to muscle their way in.

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New Data Supports Value Of Immigrants as Entrepreneurs

By James T. Berger May 23, 2018

The key finding is that first generation entrepreneurs create a total of 25% of new businesses as an average for the 50 states. The authors pointed out that number exceeds 40% of new businesses in some states.

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The Cost of Free

By Kyle T. Westra April 26, 2018

On the other hand, getting people to open up their wallets and pay for a service, especially if they’ve become accustomed to using it for free, is hard. That’s true for pay-only services and it’s also true of the attempt to split the difference between free and paid: freemium.

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Dollar General Looks Good Today. Will Tomorrow Be Different?

By Tim J. Smith, PhD March 26, 2018

From a business strategy standpoint, Dollar General has positioned themselves to avoid direct competition with Amazon and Walmart, having successfully demonstrated a way to deal with the duopoly’s increasing presence in the retail market.

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The Process for Pricing Innovation

By Tim J. Smith, PhD February 23, 2018

A good pricing decision is two-fold: One defines an aspirational list price and a commercial policy that deducts from this list price known discounts, which lead to the expected target prices by customer segment and perhaps channel.

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Value on the Table vs. Capturable Value

By Tim J. Smith, PhD January 30, 2018

In this article I will review some of the issues engaged and practices suggested by different authors, and then offer the Half-Gains Double-Losses rule to define the capturable value from the economic value to customer and therefore drive a price recommendation for guiding the pricing decision.

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Harvard Uncovers a 15th Century Business Success Manual

By James T. Berger January 28, 2018

The translated manual offers “early concepts of corporate social responsibility,” says Harvard Business School professor of management practice Dante Roscini. The manual also addresses “the issue of responsibility to the community and who you are as a person.”

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A Bad Metric for Good Pricing

By Tim J. Smith, PhD December 24, 2017

In this article, we look at how I have often seen pricing improvements measured and why I have some serious reservations with this common metric. I do this in the hopes of generating responses on how you accurately measured the effectiveness of pricing at your company.

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Pricing is Product Management’s Responsibility Too

By Tim J. Smith, PhD November 16, 2017

Product managers undoubtedly can be held accountable for the profitability of their portfolio. It is reasonably possible to make portfolio profitability a key performance indicator of a product manager. And it reasonable to make this part of their compensation package, thus holding them not only accountable but impacting their own economic condition based on the quality of the decisions they make.

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If My Customers are Unique, Why Isn’t their Pricing?

By Mary DeBoni November 16, 2017

Assigning a list price is an arduous task—we want to make sure we get it just right to ensure good margins and profitability. But are we underestimating the importance of one key question? Who is(are) my end user(s) and how are they using my product? If you can think of various answers you may have various customer segments.

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