GM Reports Loss

Folks waiting to see how the Employee Pricing for All program turned out probably already know the answer. GM posted a Q2 loss of $286M, with a $1.2B loss in North America.

Bear Stearns Cites Pricing In Anheuser-Busch Downgrade

Bear Stearns downgraded the beer giant, noting that they are “highly skeptical of the company’s aggressive price discount strategy.” AB’s aggressive pricing is confusing to me. They have generally enjoyed a small but significant price advantage over Miller and other … Read More

HP Rolls out $249 Desktop

In 1997, Compaq scored a major pricing coup by offering the first major-label desktop for under $1,000. Now, Compaq acquirer HP is offering a desktop (sans monitor) for $249, almost to the magic $199 consumer electronics price point. With back-to-school … Read More

Oracle Pricing “A Comedy of Fractions”

We’ve had several posts on how advances in chip technology make the traditional “per-CPU” software pricing model less and less compelling. Oracle had stuck firm to its “one core = one CPU” policy. They’ve relented, but in a way that … Read More

Delta Rethinks Fare Caps

Delta raised their one-way, walk-up fares caps from $499 to $599 for coach, and up to $699 for first class. They attributed the fare increase to higher than expected fuel costs. As the reader who sent this piece in asked: … Read More

Saks Submits Documents in Markdowns Lawsuit

As noted earlier, clothing vendors have started suing retailers over payments. The heart of the matter is the actual price the customer pays for the merchandise, which then gets divided between the retailer and the maker. So if the customer … Read More

Sorry If I’ve Lost Any Comments

I’ve been trying to streamline the commenting system, and I think most comments from the old system have been preserved, but if I’ve missed any, particularly if you asked questions, please let me know.

Your Thoughts on the Tyranny of Averages

One of things that’s struck me lately is how much we rely on “averages”, and how misleading those averages can be. I’d love to get your comments on this (anonymous is fine). The power of averages is that they can … Read More

Yield Management at the Cinema Takes a Small Step Forward

Movie showings are a lot like airplane flights– revenue comes from putting people in seats, and if you don’t have someone in a seat for the movie, you’ve missed out on that revenue opportunity forever. In other words, it’s a … Read More

Ford Does Conjoint Analysis Online

After giving Ford a hard time in my previous post, I’m happy to report that they’ve also been doing some innovative pricing research. According to The Car Connection, the pre-launch site for the upcoming Fusion model included randomized base and … Read More