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,…Read More
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.…Read More
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…Read More
A major driver behind undertaking a pricing transformation effort is the acknowledgement that price negotiations both take too long and also lead to discounts and rebates that are too big. Executives are looking for a way to bring these negotiation decisions under control in the hopes of reducing price erosion and improving profit capture. Pricing…Read More
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…Read More
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…Read More
I know an old company that let market the price decide.
The market decision wiggled and ziggled but decided it did.
I don’t know why the company let the market decide.
I propose it will die.
In Winning in an era of unprecedented disruption: a perspective on U.S. retail, McKinsey and Company, the international consulting firm that specializes in retail, says the U.S. retail industry is experiencing disruption – in reinvention – at an unprecedented speed.Read More
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.Read More