Archives tagged: dynamic pricing
My colleague, Nathan L. Phipps, wrote an excellent overview of price gouging with regards to the COVID-19 pandemic. I tasked myself with…
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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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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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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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Treating pricing as a verb, not a noun, applies pressure to the management of pricing decision making. But who makes pricing decisions? …
More 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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“Discounting becomes a drug that is hard to get off, and creates this basis for consumer to not trust regular prices,” Uri Minkoff.
More 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.
More 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.
More 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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