Archives tagged: dynamic pricing

Does Dynamic Pricing Hurt Customers?

By Kyle T. Westra March 18, 2020

If you’ve ever used a ride hailing app, chances are that at some point you’ve experienced a higher than expected fee. Surge…

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The New Invisible Hand: Five Revolutions in the Digital Economy

The Pitfalls of Dynamic Pricing

By Kyle T. Westra June 28, 2018

In my upcoming book, preliminarily titled The New Invisible Hand, I’ll explore the most important technological trends affecting pricing and commercial strategy. One chapter will focus specifically on this issue: unpacking the promise and perils of dynamic pricing.

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Checking Assumptions

By Kyle T. Westra December 22, 2017

Pricing is not only numbers, but strongly psychological and emotional. Certain norms emerge that dictate how products and services are sold in different industries. Customers come to expect those norms, whether or not they are necessarily the most economically efficient.

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Collaborative and Dynamic Pricing for Product Manufacturers

By Tim J. Smith, PhD March 8, 2017

Treating pricing as a verb, not a noun, applies pressure to the management of pricing decision making.  But who makes pricing decisions? …

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Price is a Verb

By Tim J. Smith, PhD January 3, 2017

So what do executives get wrong about pricing? They treat it as a noun not as a verb. Treating price as a verb drives executives to define the culture, organizational structure, and process for making pricing decisions. Leading firms do this. Failing firms don’t. Executives, you have a choice.

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Strategic Movements: January 2017

By Tim J. Smith, PhD January 3, 2017

“Discounting becomes a drug that is hard to get off, and creates this basis for consumer to not trust regular prices,” Uri Minkoff.

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Price Transparency VS Pricing Transparency

By Kyle T. Westra October 5, 2016

For Amazon Web Services (AWS), on the other hand, while your final price depends on your usage, the pricing is transparent down to the hour. While you may not know the amount due ahead of time, you know exactly how they will arrive at that number.

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What Exactly Is Target Transaction Pricing?

By Tim J. Smith, PhD September 1, 2016

Notice the deal specificity. Target prices are deal dependent. That means it can vary between customers and between selling opportunities with the same customer. Target prices may be customer dependent, product mix dependent, quantity dependent, promotional timing dependent, competitive situation dependent, or even cost dependent.

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Does Surge Pricing Have an Image Problem?

By Kyle T. Westra January 3, 2016

Clear communication about surge pricing is good customer service but without conveying its benefits, Uber is increasing the price sensitivity of its riders. This is a well-known effect of overemphasizing price in marketing communications. But price is only one reason that customers choose Uber. Why not focus on the benefits of surge pricing?

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Love Tools but Love People More

By Tim J. Smith, PhD September 11, 2015

The pricing software revolution is in full swing so who needs people anymore? Tim J. Smith, PhD takes on the thorny question of the information revolution impacting entry level and mid-tier pricing jobs and actually finds good news.

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