From time to time, an item hits the news about a company selling something at an absurd price. In the age of online shopping, these mistakes can quickly spiral out of control. When you sell high-octane gas at $0.27 per … Read More
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Supreme Court Looks at Pricing Agreements
The United States Supreme Court has taken on a case involving the legality of minimum pricing agreements. A small retailer in Texas cut prices on womens’ fashion accessories in response to similar discounting by competitors. The manufacturer threatened to cut … Read More
Common Pricing Question: If I discount, can I make it up in volume?
A lot of promotions, rebates, coupons, and other discounts offer the promise of “making it up in volume.” But how reliable is this promise? In many markets, particularly those with high price elasticity (no, not every market has high elasticity), … Read More
A Really Important Part of the Demand Curve
Josh Kopelman over at the Redeye VC blog has a great post (see image from post– click for larger image in original post) on the importance of the part of the demand curve when the price moves from “free” to … Read More
Upcoming Events
For those of you who are members of the Professional Pricing Society, we have a couple of upcoming events. First, on March 28 (this was originally March 29) we’ll be doing a webinar on Best Practices in Pricing Analytics and … Read More
The Price of a Good Night’s Sleep
How much would you pay to sleep well? For someone who sleeps like a log on a 10-year-old, $400 mattress, the answer is probably: not much. For people who don’t sleep well, or don’t get enough sleep, the answer can … Read More
How Far to Unbundle?
Unbundling offerings can be a great way to increase revenue by charging people for what they value. Hotels are experts at this. They offer a room at a relatively low rate, then charge $10 for breakfast, $9.95 for internet access, … Read More
Value Trade Offs in the Mind of the Customer
The limiting factor on price is the differential value the customer perceives. By definition, that perception takes place in the customer’s head. Research by Marketing Professor Alexander Chernev of Northwestern University’s Kellogg School of Management and cited in Forbes suggests … Read More
Software to Help You Set Prices
A nice article on Inc’s Technology center website highlights pricing software needs for small and mid-sized businesses, with a nice mention of our software and services. Business goes wrong when the price isn’t right. Can your company afford the high-end … Read More
When the Price is the Value, Can You Price too High?
The value of many luxury items is that they have no intrinsic value, but their conspicuous consumption demonstrates the wealth and social standing of the buyer. You can therefore charge much higher prices, mainly just by charging higher prices. (You … Read More