There’s a good series of posts on pricing segmentation in the retail sector over at B2B Blog. See Part 1 of 4 Part 2 of 4 Part 3 of 4 Part 4 coming later…
Monthly Archives: May 2007
Airlines Try New Pricing Moves
With high fixed costs and perishable products, airlines have long been the poster child for “yield management”, “revenue management”, and other sophisticated statistical methods for optimizing profit. Or minimizing losses. While travel is up, airlines are still looking for ways … Read More
Barker to Retire from “The Price Is Right”
Some light news for a Friday afternoon: TV show host Bob Barker will retire from “The Price is Right” after 35 years.
Nominal Price Rigidity
Slate had an interesting article on this topic, pondering why it took Coca-Cola 70 years to raise their prices from a nickel to a dime. One problem– they had created perpetual contracts with distributors, somehow not anticipating inflation. (The price … Read More
Hopefully Not the Case at Your Company
Many companies treat their pricing people poorly, which seems short-sighted when you consider the impact they have on the bottom line. Hopefully no one has a story that can top this.
Aiming the pricing dagger at a competitor’s heart
Last fall, Wal-Mart cut the price on a Panasonic 42-inch flat screen TV below $1000. Pushing through this “magic” price-point set of a wave of price drops across the electronics retailing industry, destroying a lot of the profits in a … Read More