Archives tagged: B2B

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Value vs. Power

By Tim J. Smith, PhD April 15, 2015

I met a person who hated value based pricing last week.  He was in procurement.  Where can a value-based pricing advocate find agreement with an anti-value based procurement officer?

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Charging a Premium for Reliability

By Anirban Sengupta November 24, 2014

You charge a higher price for a more reliable product if reliability is perceived as a benefit by the customer. But how do we to make a customer perceive reliability as a benefit?

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Decoy Pricing Part 2: Profitable Implementation

By Anirban Sengupta June 9, 2014

We’ve explored what decoy pricing is and how to recognize it, now let’s get into how to do it profitably.

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Customer Segmentation by Purchasing Process and Strategy Part One

By Pravin Vemuri and Anirban Sengupta January 7, 2014

“You cannot sell on value to everyone. We realized this hard fact of life after a draining annual negotiation with a major Chinese OEM (let’s name them Firm X). At the negotiation we were fighting for multiple lines of businesses.” So what can you do? A closer look at B2B price segmentation on buying behavior.

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Value-Based Pricing 101

By Anirban Sengupta October 2, 2013

Despite abundance of available and accessible literature, value-based pricing (VBP) as a concept remains mystified. The key reason is the difficulty of implementation. This article’s aim is to provide the reader a concise review of the ‘do’s and ‘don’t’s of VBP.

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“Smart Homes” – An Analysis of Emerging Business Models and Pricing Strategies

By Kamesh Chelluri August 2, 2013

Over the last few years, communication service providers as well as cable operators have been pioneering the concept of a “smart home” as a one-stop solution that satisfies their customers’ needs for safety, security, convenience, et cetera. Does this offering have a market?

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Understanding Velocity-Based Pricing – A Preliminary Investigation

By Tim J. Smith, PhD March 4, 2013

In the age of big data, sales velocity has become a metric for guiding pricing decisions. Pricing software vendors all cite sales velocity as an important factor in guiding pricing decisions. Fortune 500 and mid-tier firms alike are known to practice it. But what does velocity-based pricing mean? Why should sales velocity influence pricing decisions? How should firms use sales velocity to inform pricing? And are there serious pitfalls to this approach, or is it a sound business practice?

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Promotional Pricing…click click boom

By Curry W. Hilton November 1, 2012

After engaging in a brief conversation on “promotional pricing” with a business operations executive at a global manufacturer in consumer goods industry, I was inspired to address some misconceptions discussed and provide further insight on how firms in the B2B space implement profit-enhancing promotional pricing tactics.  First of all, promotional pricing should be viewed as a means to price segment according to consumers’ willingness to pay, not as a pure promotional strategy.  Case in point, consider Remington Arm’s Promotion of Nitro-Steel Load.

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Monsanto & the Global Glyphosate Market: Case Study

By Curry W. Hilton June 1, 2012

How did Monsanto address the expiration of their patent on glyphosate and the entrance of Chinese competitors? What were the results of their actions?

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Business Marketing Association 2011 Conference Unleashes Torrent of Content & Data Strategy

By David Dalka June 19, 2011

In the first week of June, the Business Marketing Association (BMA) held its annual B2B marketing conference in Chicago. The show over-delivered on its “Unleash” theme with a tidal wave of information about the changing nature of strategic marketing, business models, content and data strategy. Incoming BMA chairperson Al Maag, Chief Communications Officer of Avnet, had this to say about outgoing chairperson Gary Slack, “The annual conference is the jewel in our thought leadership BMA crown thanks to Gary Slack.

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