Farhad Manjoo had a provocative piece at Slate, predicting that Amazon will soon start giving away Kindle readers. Fellow pricing geek, Rags Srinivasan and I got into a Twitter discussion, with Rags claiming that Manjoo was way off base. Rags … Read More
customer segmentation
Restaurant Pricing– Food for Thought
(Guest post by Peter Maniscalo.) My wife and I recently visited one of our favorite local restaurants (a “Bar & Grill” as it’s called). We’ve been loyal customers for several years. It’s a nice place, always busy with good food, service, atmosphere … Read More
2 Sentence Pricing Advice for Small Business Owners
1. Be better, not cheaper. If someone in your market doesn’t think you’re better, you’re a commodity and have no pricing power. If you’re small, you probably have less costing power than the your larger competitors. Commodity pricing + uncompetitive … Read More
You’re Not Getting Enough Price Objections
Many business owners and sales reps hate price objections. They view price objections as some kind of faux pas that they should have avoided, an awkward situation, best resolved quickly (and often with huge damage to profits). Do you like … Read More
Amazon Enters the Tablet War for Real, and at $199
As expected, Amazon this week launched a new media tablet, the Kindle Fire, at a $199 price point. This immediately started the debate about whether the Kindle Fire was an iPad killer. Indeed, this debate overshadowed the overhaul of the … Read More
Do Pricing First, Not Last
Creative people love making things– widgets, software, knowledge, service calls. A lot of businesses and product lines get started this way. Someone has a cool idea to make something. Skeptics shoot down the idea. The founder or engineer makes it. … Read More
Let Your Customers Do Your Price Optimization For You
Many small business owners consider pricing some kind of dark voodoo that you can only get right with the appropriate incantations, or access to a pricing consultant who knows the right incantations. At risk of hurting my own business, I’m … Read More
Price Increase through Reverse Volume Discount
It’s no secret that companies often change package sizes to mask or soften price increases. Coca Cola is going one step further, touting it’s 16oz bottles as “more for your buck” at $0.99. Want more soda? You can pony up … Read More
How did Netflix raise their prices 60%
Twitter is abuzz with the anguished cries of Netflix customers, many of whom will soon be paying $16 per month instead of $10 per month for movie rentals. Many others have angrily threatened to cancel their subscriptions. Instead of focusing … Read More
To Groupon or Not to Groupon?
Groupon has taken the local deal market by storm, growing quickly to $2B in revenue (depending on how you define “revenue”). The local deals company has also created massive buzz and is now preparing for one of the largest IPOs … Read More