We were in Miami last week for the Pricing Society fall conference. This week we’re in San Francisco for Dreamforce, the salesforce.com user bash. Almost everyone we talk to is concerned about the economy, and many people are already experiencing … Read More
Blog
Sometimes it’s about deciding who your customers aren’t
On a recent Apple earnings call, CEO Steve Jobs took a question from an analyst wondering why Apple did not introduce a lower priced laptop. Jobs’ response (thanks to CNet):What we want to do is deliver an increasing level of … Read More
3 Approaches to Pricing in the Downturn
The economy is in turmoil, credit markets are in terrible shape, inflation is high, and consumer confidence is low. If you just received billions of dollars in taxpayer money as a reward for your part in wrecking the world financial … Read More
What good is a price if you can’t invoice it?
About a decade ago, at the height of the dot-com boom, I was doing some work for a tech industry heavyweight that sold some of the most sophisticated technology on the planet. Unfortunately, despite their technological prowess, they had trouble … Read More
The reverse volume discount
Generally, per-unit prices go down as volumes go up. This is not always the case, however. Occasionally, whether by accident or as a tax on the mathematically disinclined, you’ll see something like this:(From The Consumerist, which includes another, even more … Read More
What do investors care about?
Who in the organization is most aligned with the pricing group? If the pricing group is doing it’s job, it’s the shareholders. When companies report strong pricing power, share prices go up. When company struggle with a tough pricing environment, … Read More
What other fees can airlines charge?
Bitten by rising fuel costs and a weak economy, airlines are struggling. Naturally, they have turned to their creative pricing departments to design new fees. These fees include checking bags, water, and the extra leg room in exit row seats. … Read More
Wholesale Prices Make Biggest Jump in 27 Years
The US Producer Price Index rose 9.8% for finished goods for the 12 month period ending in July, the largest jump in 27 years. Businesses are stuck between the rock of rising costs and the hard place of weakening spending. … Read More
How do you know your contract terms are unreasonable?
Tim Cummins, president of International Association for Contract and Commercial Management, recently wrote a post on his Commitment Matters blog about how courts had thrown out contracts related to software and cell phone contracts. While the court rulings, should they … Read More
I Am Rich– No More
We’ve had other discussions about how for some luxury goods, the exorbitant price is part of the value (see $300,000 watches that only tell you whether it’s day or night). Meanwhile, as some of you may have heard, Apple launched … Read More