Spring is a time of renewal — in nature, but also in business. It’s an ideal time to revisit old practices, assess their efficacy and commit to refreshing what might not be helping the long-term interests of your business, including pricing policies and strategies. Last year pricing made the headlines on several occasions. From Bank…
Pricing low to gain volume is the oldest move in the pricing playbook; the laws of economics say that as you lower price, volume will go up. Therefore many companies that want to dominate a market, or are in a rush to grow in a new market, will use low prices to achieve their goals…
A friend of mine recently visited Thailand and proudly told me about a shopping experience he had buying an item worth $75 for only $25. He was glad he had negotiated (another tourist had bought the same product for the full $75). We have a saying: “It is the best negotiators that get the best…
In the early 2000s, a growing technology company was faced with increased competition from lower-cost providers. In a bid to appeal to a younger demographic and defend its market share leadership, the company reduced the price of its services by 20%. The result? A negligible increase in volume and a 13% reduction in average yield….
One afternoon last year an employee of mine in the U.S. made yet another run to the local baby store to buy a box of diapers for his two year old son. At the store, he found something new on the shelf: a bonus-size box that contained a toy designed to remind parents and the…
On May 4th the Canadian government officially stopped production of the penny, ironically it is not of sufficient value to justify its price. Indeed, the penny used to have 20 times more purchasing power than it had when it was first produced on January 2, 1908. However, “making cents hasn’t made sense for a long…
Cost based pricing is relatively simple; you figure out your cost of goods, set a desired margin for each unit, add that margin onto your costs and you have your price. Cost based pricing doesn’t require the detailed level of analysis and value measurement necessary to employ a value-based pricing strategy. Because it’s simple, many companies fall…
My barber recently left the salon he had worked at for the past 25 years and relocated. I visited him earlier this week at his new location and he shared his journey and why he chose this particular spot. I thought there were some interesting lessons to take from his experience and that I’d share…
Pol Vanaerde says:
Congrats to both teams !
Partnerships like these, based on a...
Steve Sassi says:
A great way to understand the value you're delivering to your...
Jacqueline Davis says:
Hi Siva,
Thanks! I couldn’t agree with you more on the...
Jacqueline Davis says:
Hi Rikhath,
The question of why your company needs a pricing team...
Siva Ram Yellapragada says:
Simply awesome !!
We have a strong pricing team in our global...
