Although I’ve said before that with luxury items, the price is the value, I’m still occasionally astounded. Now along comes one of the most absurd items I’ve ever seen. Swiss watchmaker Romain Jerome created a watch they call “Night & … Read More
customer segmentation
Pricing Advice from the World’s Oldest Profession
For many people watching the Elliot Spitzer scandal unfold, the shocking part of the story was not that a powerful politician went to a prostitute. That seems almost retro these days. What seemed jaw-dropping was the amount of money Spitzer … Read More
Unbundling
Have you been part of a discussion where everyone at your company believed that their offering provided more value than a competitor’s, but the customers just don’t see it? The marketing team often thinks sales doesn’t know how to sell … Read More
Price Segmentation
Outside of work, when people learn what I do for a living, I tend to get one of two responses. Most likely, people nod politely while looking for exits. Or, they tell me “we sell widgets, and I know we’re … Read More
A Powerful Pricing Thought Experiment
Courtesy of Seth Godin, who asks you to think about real estate agents charging 6% of a transaction, and facing mounting price pressure. The challenge is… what if you had to charge 7%. What if you had to charge more … Read More
Unbundling the food and the seat
No, we’re not talking about airlines, we’re talking about restaurants. People in Europe are used to this already, but as an American visiting the UK recently, it was slightly surprising to see different prices for food and drink consumed on … Read More
Promotion Addiction
One of the challenges of using promotions effectively is that the more successful they seem initially, the more detrimental they can be over the long run. The reason is that the condition buyers to wait for promotions. Instead of drawing … Read More
(E)Book Pricing, Part 2
The folks over at Wrox are running a pricing experiment. They’re discounting their ebooks by 50% to see how much extra volume they get, and whether they can convert people who steal ebooks into paying customers. While this is an … Read More
Customer Self-Segmentation
One the best ways to segment prices is by allowing customers to sort themselves. Here’s an interesting sign that does just that.
iPhone Hype Obscures Apple Pricing Strength
If you’re lucky enough to be living under a rock, you may not know that Apple is introducing its iPhone today. Although I had hoped not to be part of the hype onslaught, I have been meaning to write a … Read More