Geoffrey James over at BNet was just at the Selling Power 2.0 conference and picked up 6 tips for selling in a downturn. What caught my eye was #3: “Don’t lower prices. Find new and innovative ways to lower the … Read More
customer segmentation
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
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
You Don’t Have a Supply Problem, You Have a Pricing Problem
This is one of my favorite maxims for companies that say they can’t keep up with business. (Granted, it’s a great problem to have.) Seth Godin phrases it slightly differently, writing “scarcity is a choice” in a great post on … Read More
An Innovative Way to Sell $50 T-Shirts
Here’s an interesting pricing model for t-shirts. 200nipples (yes, even the name is, umm, remarkable) sells limited edition runs of 100 tshirts. The first shirt costs $1, the second $2, all the way up to $100. This has the nice … Read More
The Psychology of Price Increases
In last week’s post How to Raise Prices, I referenced two interesting articles on techniques for raising prices, and also suggested using unbundling to differentiate between customers who want maximum value and customers who want minimum price. Today, let’s look … Read More
How to Raise Prices
With the economy in the state it’s in and the price of energy going up, a lot of companies are making some tough pricing decisions. Their costs are going up, squeezing their margins. Also, they are worried that if they … Read More
“How are we different?” not “How are we cheaper?”
Most new businesses fail. They typically fail not because they can’t deliver value, but because they can’t capture enough of that value to turn a profit and grow. Capturing value requires a clear value message and an appropriate pricing policy. … Read More
Price Discrimination on Priceline
As a pricing person, priceline.com is a fascinating site. Priceline is like a “normal” travel site where travelers can purchase airline tickets, hotel rooms, and rental cars, but it also offers a “Name Your Own Price” feature. This lets people … Read More
Differentiating Commodities
Pricing power comes from differential value. If you offer more value, you can charge more. Value is perceived by the customer, however, so while you can suggest the value of your offering, the customer ultimately decides. Often, attributes that some … Read More