We are certainly cursed to live in interesting times. While individuals, families, communities, and governments struggle to adjust to the realities of COVID-19, the corporate world is also facing a reckoning. Seeing the business reaction to COVID-19 reminds me of one of my favorite quotes, uttered by James R. Schlesinger, first US Secretary of Energy,…

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A hand give a face mask with many hands try to grab or capture ,

As our nation responds to the coronavirus situation, stories have spread about the behaviors of some profit-seekers. The New York Times reported on a pair of brothers in Tennessee that used a U-Haul truck to collect more than 17,000 bottles of hand sanitizer and thousands of packs of antibacterial wipes from mostly rural dollar stores.…

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Organizing for pricing excellence: the pricing organization

What organizational factors make for pricing excellence in a company? Moorman and Day discussed the academic research on the development of excellence in marketing organizations.  We find truths in their work that translate well to the specific field of pricing, one of the four elements of the marketing mix. One could describe pricing excellence as…

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Classical economics assumes that our rational self-interest will guide our decision making. The first part of that assumption, the “rational” part, was proven to be a premise needing clarification by the work of Kahneman and Tversky in their 1979 paper on Prospect Theory. This seminal work led to an entirely new branch of economics, best…

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The profit revenue bridge for pricing analytics dashboards

Executive dashboards are valuable coordination tools. They help pricing teams communicate facts and identify areas deserving executive attention. This is demonstrably clear. Yet, what facts specifically should be on a pricing dashboard? What are the issues that pricing should bring to the attention of their CEOs? To address this question, I asked ten different pricing…

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MoviePass pays theatres for each visit by a patron. Simply, it’s poor thinking on MoviePass’s part. Pricing Strategy, Chapters 12 and 13 would have told them this was poor thinking. Too caught up in Lemming Thinking on e-subscription services.

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