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
customer segmentation
“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
Luxury Pricing: Top This!
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
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