Top 6 – February 2013
Published February 4, 2013
Why do Americans generally get paid more to do business than to do engineering or science? Is it that there is greater opportunity in helping people interact with each other peacefully through trade than in helping them interact with the forces of nature, or is it that our priorities are out-of-whack?
- Predictions are often wrong, but they can be useful. Just think about your business planning process for an example. Never works out that way, but it does help the organization navigate its changing landscape.
- The seeds of downfalls of leading corporations are often found in the exact things which propelled the corporation to lead. Schumpeter called this creative destruction. My generation named a band after the idea: Einstürzende Neubauten.
- Nothing creates capital like measured risk taking in response to marketing-led customer need discovery – so why do corporate boards pay more attention to finance officers?
- Low prices don’t guarantee customers. Value Does. Value which leaves the customer with Greater Benefits than the firm extracts through Price than all other competing offers.
- If you want to a real competitive advantage, you have to be willing to pursue a radically different path than your competitors in some dimensions.
- Small firms can fight above their weight-class when they create a more compelling value offering. No firm, not even those in a mighty duopoly, is immune indefinitely. Change happens.
About The Author
Tim J. Smith, PhD, is the founder and CEO of Wiglaf Pricing, an Adjunct Professor of Marketing and Economics at DePaul University, and the author of Pricing Done Right (Wiley 2016) and Pricing Strategy (Cengage 2012). At Wiglaf Pricing, Tim leads client engagements. Smith’s popular business book, Pricing Done Right: The Pricing Framework Proven Successful by the World’s Most Profitable Companies, was noted by Dennis Stone, CEO of Overhead Door Corp, as "Essential reading… While many books cover the concepts of pricing, Pricing Done Right goes the additional step of applying the concepts in the real world." Tim’s textbook, Pricing Strategy: Setting Price Levels, Managing Price Discounts, & Establishing Price Structures, has been described by independent reviewers as “the most comprehensive pricing strategy book” on the market. As well as serving as the Academic Advisor to the Professional Pricing Society’s Certified Pricing Professional program, Tim is a member of the American Marketing Association and American Physical Society. He holds a BS in Physics and Chemistry from Southern Methodist University, a BA in Mathematics from Southern Methodist University, a PhD in Physical Chemistry from the University of Chicago, and an MBA with high honors in Strategy and Marketing from the University of Chicago GSB.