How is today’s economy impacting company pricing plans?

How is today’s economy impacting company pricing plans?

Your pricing department activity and staffing issues?

Well the Macro-economic news is overwhelming. Good time to connect with you and about your micro-economic issues of the day.

To what extent is your company responding to downward price pressures? How much more or less is the company turning to your department for price and profit help?

Perhaps your company is the exception and plans to thrive with pricing in 2009.
Look at McDonald’s who just reported an 8% sales increases, despite huge currency impacts. They credit lower pricing, more frequent promotions and a healthier menu to their success.
For example --my McDonalds now offers free coffee every workday morning ; so guess who switched out of Starbucks for Mickey D? ( right me!-and “I’m lovin it”)

Please Share with the pricers what seems to be working / or not in your pricing world. Eric Mitchell Founder PPS

Innovative Companies Rethink Pricing Metrics

This is an excerpt from a great article from the Thunderbird School of Global Management entitled "Innovative Companies Rethink Pricing Metrics":

"When General Electric entered the jet engine market, the Ohio-based company took an innovative approach to pricing policy. Instead of selling jet engines for a one-time fixed cost, GE decided to charge “power by the hour” through a program that bills customers whenever the sold jet engine is in the air.

"Similarly, the DVD rental company Netflix changed the rules of the movie rental game by charging a monthly subscription and eliminating late fees.

"Despite such examples of the critical role that pricing policy can play in a company’s overall marketing strategy and success, business practitioners and scholars have largely ignored the topic and left managers with little guidance on the subject."

Read the full article: "Innovative Companies Rethink Pricing Metrics."