tag:blogger.com,1999:blog-5627444968779250467.comments2023-05-21T06:40:16.405-07:00Pricing Blog from the Professional Pricing SocietyPPShttp://www.blogger.com/profile/04529378213184092944noreply@blogger.comBlogger33125tag:blogger.com,1999:blog-5627444968779250467.post-67236403276659924332012-04-11T06:13:59.421-07:002012-04-11T06:13:59.421-07:00Great points! Regarding local pricing groups, is ...Great points! Regarding local pricing groups, is there a list or other collection available somewhere? My initial search has turned up nada (but that may be due to my location). Thanks!Michael Davishttps://www.blogger.com/profile/15245723895274099048noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-26343657550250712232011-04-06T15:00:17.766-07:002011-04-06T15:00:17.766-07:00It's really true. Wal Mart with lowering the p...It's really true. Wal Mart with lowering the prices on suppliers, Microsoft with complete domination of the PC market. Fortunately most companies back down before true corruption of pricing.Unknownhttps://www.blogger.com/profile/00789250050724052557noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-80097592115469474092011-02-03T15:05:33.088-08:002011-02-03T15:05:33.088-08:00My sense is that there is more bark than bite in t...My sense is that there is more bark than bite in this particular case. While a disproportionate number of angel investors may reside in Silicon Valley, a global economy means that there are more avenues than ever to pursue that kind of financing. Where, I ask, is the actual evidence of wrongdoing? And what types of market power would one expect to see from an abuse of privilege? <br /><br />While the merest whisper of collusion seems to cause people to run for the exits, there are other sacred cows out there that need to be knocked down a peg or two. Two biggies are the exorbitant costs of arbitration, and the reckless use of debt-to-equity conversions as a first course of action. <br /><br />Arbitration was promised to be a panacea to escalating litigation costs, but quickly became as costly without the transparency. <br /><br />Likewise, other countries recognize that debt-to-equity has been used to unfairly squeeze out equity positions, but here in the United States it gets scant attention from the various regulatory bodies.Brianhttps://www.blogger.com/profile/11424406732508116911noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-54667531957533825372010-04-15T16:57:13.305-07:002010-04-15T16:57:13.305-07:00Global prices are also becoming an important facto...Global prices are also becoming an important factor in setting pricing strategies. You may want to check out < HuMuch.com >. It's a new approach to answering the question "Is the Price Right?"Anonymoushttps://www.blogger.com/profile/17672159822407657397noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-82638040836363141342009-06-24T12:41:28.332-07:002009-06-24T12:41:28.332-07:00Hi Eric,
Everything I have read about Microsoft’s...Hi Eric,<br /><br />Everything I have read about Microsoft’s pricing strategy for Windows 7 indicates that they will make the same mess of it as they did with Vista. <br /><br />The problem here is the missing meaningful differentiation. Just tossing out a bunch of versions with different prices without anchoring the functionally of each version (and the unique price) to consumers’ value perceptions and willingness to pay will backfire....just as it did with Vista.<br /><br />But how do I know Microsoft didn’t do the research and actually based the Vista versions (and presumably Windows 7 versions) on solid data from the marketplace; value drivers, decision drivers, price elasticity, cross price elasticity, etc.? Easy - if Microsoft had done it, or done it correctly, they would not have seen the consumer uproar, confusion and accusations of gouging customers that have been dogging them since the release of their last ill-fated operating system. <br /><br />In my opinion, it’s just another reason to own a Mac.<br /><br />Per Sjofors<br />Atenga IncPer Sjoforshttps://www.blogger.com/profile/04863281267102378148noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-25813498127771797522009-06-24T05:31:43.511-07:002009-06-24T05:31:43.511-07:00Well, my perception is that this is a case of pric...Well, my perception is that this is a case of pricing "theory" overcoming pricing "practice". In theory, precise segmenting of the market should lead to maximum returns for your product. The ability to deliver a specific set of features and capabilities to a specific audience should mean that you have targeted those things the customer values and therefore will pay for. But... Complexity never appears on any customer survey of desired characteristics. When was the last time you were in a store and were thinking "You know what this product line needs? More complexity.". <br /><br />So I think that Microsoft has ignored this practical side of pricing in pursuit of some ideal state? Are they likely to catch their own error? Unlikely. Whether they meet the legal definition or not, for all intents and purposes they are a monopoly and success breeds a certain type of blindness. I would hope to be wrong, but I expect to see a complex pricing schedule that will make sense to only product experts.<br /><br />Rick RobinsonR^2https://www.blogger.com/profile/16441878294893780696noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-35876615451589564042009-06-23T20:18:23.553-07:002009-06-23T20:18:23.553-07:00very goodvery goodAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-8629784448571292932009-05-13T16:14:00.000-07:002009-05-13T16:14:00.000-07:00As per my comments on the Starbucks article (March...As per my comments on the Starbucks article (March 17th), there's a lot to be said for using value-adds to avoid discounting the core products during a downturn. Once again I think the key is linking the two as a bundle, and here the issue would appear to be whether the traditional Best Buy customer will stay in-store because of these 'experiences'.<br /><br />The Best Buy brand is only just entering the UK marketplace (via Carphone Warehouse) so it's difficult for me to speak from an informed position. My understanding is that their USP is a highly technical salesforce. I think people shop there because they're value conscious, and aware that, in technology, really understanding features is key to assessing the genuine price of something.<br /><br />The 'experience' given as an example seems at face-value to be a bit gimmicky and therefore may not appeal to the existing customer they're seeking to retain.irevans2https://www.blogger.com/profile/00791398140873213587noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-38184077376088322772009-05-13T15:57:00.000-07:002009-05-13T15:57:00.000-07:00In the UK Starbucks is also trying to retain a mar...In the UK Starbucks is also trying to retain a market share that's being attacked from two sides. On the one hand the UK high street is reaching saturation point for coffee shops, as the recently high margin sector becomes overcrowded. On the other, the economic downturn has led to a spate of press and online articles with tips on how to save money. No 1. tip on most lists... cut out 'fancy coffee' and save yourself £50 a month.<br /><br />I think Reuben is right in suggesting that giving away some of the value-adds, could help sustain core pricing so long as they get the message across strongly enough. In particular offering free Wi-Fi access would not only support the offer without discounting, but also (from my own experience) increases time in shop - and therefore the likelihood of additional purchases and the loyalty to the brand. The messaging needs to be about the value of 'coffee and free internet' as a bundle though or the give aways can undermine the premium in the brandirevans2https://www.blogger.com/profile/00791398140873213587noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-50515649175453512832009-04-29T09:21:00.000-07:002009-04-29T09:21:00.000-07:00I couldn’t agree more that Product Managers need t...I couldn’t agree more that Product Managers need to come up with better ways to price their products: to do so requires better tools to help make effective decisions regarding strategy, operations, marketing, etc. There is a need in most industries where business leaders struggle with the challenge of optimizing marketing decisions when it comes to resource allocation and pricing strategy. The universe of complexity surrounding marketing decisions due to the proliferation of advertising channels, products, customers, and supplier networks – reaching billions of possible permutations in large organizations – makes human navigation of this complexity impossible.<br /><br />The solution here is Scientific Micromarket Management, which makes it possible for organizations to assess how each customer values your product and offer exactly that price every day in every market. Capitalizing on these billions of tiny demand shifts with a dynamic pricing system more targeted than human intuition enables companies to finally understand why every single customer buys what they buy from you and what they are willing to pay for it every time. This is far more comprehensive than any pricing strategy; this is a complete revenue optimization solution. These solutions allow companies to actively shape their markets through the probabilistic prediction of future outcomes, to stay ahead of continuously shifting market demand through the realization of market awareness, and to achieve unity of direction and coherence of decisions across organizational units. The solutions provide immediate and enduring impacts on the organization’s financial performance and competitive strength, and allow companies to lead their markets by turning complexity into competitive advantage.<br /><br />Joe Smiley<br />Sentrana<br />http://www.sentrana.comwickedsmarthttps://www.blogger.com/profile/04732207586027699688noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-70713749390167149172009-04-29T09:09:00.000-07:002009-04-29T09:09:00.000-07:00We just have to look at the fact that Americans pa...We just have to look at the fact that Americans pay $8B for bottled water when they can get it for free out of the tap... obviously lower prices are not the silver bullet for businesses to lead their markets! A competitive response strategy that reacts to your competitors’ price moves surrenders control over your revenue structure and inevitably locks your firm into a race-to-the-bottom pricing with the rest of the industry. I recommend to business leaders to change their perspective to be profitable in this economy: forget about what your competitors are charging and other exogenous factors that you can’t control, and instead turn your focus on effectively generating internal capital by utilizing a Revenue Optimization solution. At Sentrana, we have successfully implemented Revenue Optimization solutions with clients spanning industries as diverse as Consumer Packaged Goods to Computer Software, where these organizations were empowered to determine their prices, marketing mix, and product assortments that maximize revenue and profitability. These solutions allow companies to actively shape their markets through the probabilistic prediction of future outcomes, to stay ahead of continuously shifting market demand through the realization of market awareness, and to achieve unity of direction and coherence of decisions across organizational units. The solutions provide immediate and enduring impacts on the organization’s financial performance and competitive strength, and allow companies to lead their markets by turning complexity into competitive advantage.<br /><br />A related blog posting:<br /><br />Forget Your Competitors, The Power to Consistently Lead Your Market Lies In Understanding How Every Customer Values Your Product<br /><br />http://blog.sentrana.com/2009/04/17/forget-your-competitors-the-power-to-consistently-lead-your-market-lies-in-understanding-how-every-customer-values-your-product/<br /><br />Joe Smiley<br />Sentrana<br />http://www.sentrana.comwickedsmarthttps://www.blogger.com/profile/04732207586027699688noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-67822288809194878352009-03-31T14:14:00.000-07:002009-03-31T14:14:00.000-07:00Starbucks is also trying loyalty programs (althoug...Starbucks is also trying loyalty programs (although these will likely give discounts to their best customers), and selling gift cards at a discount through other retail channels.<BR/><BR/>If they want to bring people back into the stores, though, they should bring back manual espresso machines and offer free internet.Reuben Swartzhttps://www.blogger.com/profile/08955013905601931011noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-70614114576360130112009-03-09T20:34:00.000-07:002009-03-09T20:34:00.000-07:00Great post. To continue to the "value" discussion...Great post. To continue to the "value" discussion, I'd like to add that you have to look at the perceived differential value you bring to the customer. Value is only meaningful in relationship to alternatives, and it's only relevant if the customer perceives it.Reuben Swartzhttps://www.blogger.com/profile/08955013905601931011noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-8060634340870555922009-02-27T08:38:00.000-08:002009-02-27T08:38:00.000-08:00This is a very good summary of key success factors...This is a very good summary of key success factors for pricing organizations at any time, but especially now. I would like to see an expansion of each point as individual blogs. Knowledgable guidance for survival during this economic collapse is valuable for everyone, but is severely needed at the C level.Jerry M. Withershttps://www.blogger.com/profile/17426534554634856569noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-9637776848324393022009-02-18T16:21:00.000-08:002009-02-18T16:21:00.000-08:00You can read about the results of our pricing expe...You can read about the results of our pricing experiment on the App Cubby blog. http://www.appcubby.com/blog/<BR/><BR/>David<BR/>App Cubbydavidhttps://www.blogger.com/profile/11277305084585529027noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-73411736023470341382009-02-09T18:44:00.000-08:002009-02-09T18:44:00.000-08:00As much as I agree with Pat on the answer of #1, t...As much as I agree with Pat on the answer of #1, the fact of the matter is, corporates will still look at their bottom line for commodity items such as computers. On equal specifications, they will ignore stylishness and ruggedness, even more so during times of recession.Chunky Munkyhttps://www.blogger.com/profile/12948177578243118558noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-50906535089970723422009-02-04T08:40:00.000-08:002009-02-04T08:40:00.000-08:00Interesting list of questions....thought I might t...Interesting list of questions....thought I might take a shot at answering a few and see what you and your readers have to say in response:<BR/><BR/>Regarding #1: Focus on your value proposition, not your price. Remind the buyer that [ex] your superior service and support before and after the purchase is priceless, or the special materials used in your cutting edge manufacturing process produces a rugged, stylish Product.<BR/><BR/>Regarding #2: You can be prepared to capitalize in opportunities that are brought about by the recovery through research. Talk with your prospects and customers...find out where their 'pain' is and figure out how to relieve it. Once you identify something of great potential, refocus your existing resources from things that are not producing profitable revenue.<BR/><BR/>So, what's everyone think?patmcgrawhttps://www.blogger.com/profile/05176060304748386709noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-34941705509565382822009-01-26T07:31:00.000-08:002009-01-26T07:31:00.000-08:00Here is the link to the original:http://retailindu...Here is the link to the original:<BR/><BR/>http://retailindustry.about.com/b/2009/01/03/lowest-prices-may-lose-customers-retailers-still-win-with-customer-satisfaction.htm<BR/><BR/>Thanks for your feedback. I would love to hear more from your perspective - EMProfessional Pricing Society Bloghttps://www.blogger.com/profile/18173468094885613075noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-39373045203372978462009-01-22T12:31:00.000-08:002009-01-22T12:31:00.000-08:00Eric, which "retail industry blogger" wrote the ab...Eric, which "retail industry blogger" wrote the above? I'd be curious to see a link to the original.<BR/><BR/>My firm, RetailNet Group, just published a brief survey of our recent store visits. It is clear that retailers are delivering price and value in new and interesting ways in-store.<BR/><BR/>http://retailnetgroup.com/Newsletters/Files/R<BR/>NGStoreVisitsJan2009.pdfUnknownhttps://www.blogger.com/profile/11644508510529442316noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-74533442657367234012009-01-05T11:39:00.000-08:002009-01-05T11:39:00.000-08:00We've been watching a similar trend in demand pric...We've been watching a similar trend in demand pricing. See this excerpt from our December newsletter:<BR/><BR/>Just the Ticket<BR/>by Steve Haggett<BR/><BR/>Many service providers operate without an ability to store inventory–an unbilled hour cannot be stored, no more than an unfilled flight can add customers after take-off.<BR/><BR/>The airlines have pursued a fine-toothed pricing strategy to address this problem, defining the value of a seat based on the time remaining until take-off, gradually increasing price as customer value increases and price-sensitivity drops.<BR/><BR/>Now performance and entertainment providers are adopting this strategy. A stadium or theatre offers a fixed capacity, but the value of the performance can change significantly from day to day. This is immediately recognizable in the scalper’s market. While the face value is the same, when the Red Sox play the Yankees, the street value of the tickets is orders of magnitude higher than the same seats the next week, when the Royals are in Boston.<BR/><BR/>Teams are now exploring variable pricing systems, designed to fill capacity when perceived value is lower, and maximize revenues when perceived value is higher. With the ability to reflect ‘street value’ on ticket prices, teams can both attract more fans and increase total revenues.<BR/><BR/>This strategy can work for any company facing changes in demand and perceived value for a static-priced offering. By matching the pricing metric to customer value, rather than offering cost, companies can improve satisfaction, demand, and profits. In the case of an airline, the value is based on advance purchase time. In the case of a theatre, it’s weekends vs. matinees–so a pricing approach offering different fees for Friday at 7 pm from Tuesday at 10 pm makes more sense than two simple prices. In the case of a sports team, it’s related to opponent. All the while, the cost of providing that service doesn’t vary.<BR/><BR/>Identifying the way your customers perceive value, as opposed to your basic cost, is a win for everyone.Anonymoushttps://www.blogger.com/profile/11332379804411263856noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-3521826877516946522008-12-17T19:18:00.000-08:002008-12-17T19:18:00.000-08:00This comment has been removed by a blog administrator.Timo437https://www.blogger.com/profile/09071102791649624589noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-74222974223093508382008-12-17T19:05:00.000-08:002008-12-17T19:05:00.000-08:00Poor pricing will cost a CEO his/her future.They ...Poor pricing will cost a CEO his/her future.<BR/>They need a Pricer to suceed !!Professional Pricing Society Bloghttps://www.blogger.com/profile/18173468094885613075noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-25115985683805783422008-12-17T15:49:00.000-08:002008-12-17T15:49:00.000-08:00This comment has been removed by a blog administrator.Timo437https://www.blogger.com/profile/09071102791649624589noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-52604398789139729422008-12-17T15:48:00.000-08:002008-12-17T15:48:00.000-08:00Two day's after the publication of this entry, Lon...Two day's after the publication of this entry, Lonnie Bo Pilgrim resigned under pressure from board members.Timo437https://www.blogger.com/profile/09071102791649624589noreply@blogger.comtag:blogger.com,1999:blog-5627444968779250467.post-31006117787645062002008-12-09T11:52:00.000-08:002008-12-09T11:52:00.000-08:00I'm not sure that we have ever seen a pricing envi...I'm not sure that we have ever seen a pricing environment that it is this volatile. Just six months ago a number of firms were pushing - and getting - price increases. Now some of those same firms have seen demand crater and severe downward pressure on prices.<BR/><BR/>The key in these times is to stick to fundamentals. Here are a few of the points that companies have to stay focused on.<BR/><BR/>1. Recognize that a significant amount of demand is sidelined right now - and no amount of price cutting is going to bring it back. Those price cuts will, however, devalue your remaining book of business.<BR/><BR/>2. Manage by policy, not exception. If you need to make price adjustments focus on maintaining the integrity of your price lists. Ad-hoc reaction to the accounts that yell the loudest will undermine your ability to capitalize as pricing power begins to return.<BR/><BR/>3. Fast forward to the future and "review" every pricing decision that you are considering making. Did (will) those decisions help or hinder your ability to recover quickly when economic conditions eventually turn around?Mark Burton (Holden Advisors)https://www.blogger.com/profile/14852871179310286100noreply@blogger.com