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Value-based Pricing in Direct Marketing

A direct mail company, On-Card Inc. is offering pay-per-response direct mail. Buyers bid what they think a response would be worth, and On-Card runs the campaign (buyers must also pay postage). This is more like online advertising than traditional pay-per-piece … Read More

Blockbuster Settles Late Fee Suits

Blockbuster paid $630,000 and offered refunds to some customers to settle suits in 47 states over its “No Late Fees” program, which actually charges late fees. The New Jersey suit is still pending. For those just tuning in, the suits … Read More

Pricing Guaranteed to Make Millions Mad

I’ve referred to Microsoft pricing a number of times in my newsletter. They practice great segmentation, they create new markets by lowering price points, and of course, they get in trouble through aggressive discounting and bundling practices. One issue they’re … Read More

Pitfalls of Best Pricing — Keeping Track

Best price guarantees are a great way to make customers feel good, and they can even contribute to higher prices in some markets, but you have to keep track of them. Nowhere is this more important than in dealings with … Read More

Outlawing Gender-Based Pricing

A recently married Ontario legislature has decided that price gaps between men’s and women’s clothing, shoes, dry cleaning, and hair styles are a human rights violation. Lorenzo Berardinetti has proposed a bill that would levy fines for those who offer … Read More

The 1% Discount Plan

How do you encourage loyalty among even the most price-sensitive customers? Loyalty programs are a big component of both consumer and business-to-business pricing strategies. (In B2B, they’re usually called rebates, promotional allowances, co-op advertising, or the like, but they’re essentially … Read More

Small Biz Owners: Keep Web Prices Current

Putting up a website can be a great way to promote a small business. Just make sure you keep it up to date. The owner of a restaurant in New Zealand pleaded guilty to violating the Fair Trading Act and … Read More

Nice Price Presentation

I’ve been meaning to write about some good pricing examples, and I found one at the airport yesterday morning (way too early). The menu read something like this: 2 Breakfast Tacos (Egg, Cheese & Potato).……6.692 Breakfast Tacos with Bacon ……………………..7.492 … Read More

GM Cuts SUV Prices

In a rare pricing move, GM made large price cuts in its SUV line in the middle of a model year without altering incentives. This will hit GM’s profit-per-vehicle pretty hard, but also indicates how competitive the segment has become, … Read More

Couldn’t Ask for Better Timing

7-11 selects KSS PriceNet to manage gasoline pricing. I had no idea this would get announced when posted earlier. See the press release here.