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I recently took a few rides with Lyft in New York City, and I was surprised when the actual prices I was charged were higher than the price I was shown when booking. I finally complained after the last trip to the airport was $30 more than quoted, (I know, I should have switched earlier), […]
We are often asked by clients and prospective clients whether it is better to have a centralized or decentralized pricing function. Of course, without much more information the only answer to that question is, “It depends.” That said, we almost never recommend completely centralizing or decentralizing pricing. We generally believe a hybrid solution works best, […]
Over the past decade or two, we have all received countless emails from financial institutions reminding us to beware of emails requiring our account info. Despite those warnings, the same financial firms also send emails with clickable links. Once you click a link, you are required to provide your login and password. The process does […]
We use multiple online tools at SPS, and last month I called one of the providers with the intention of upgrading to a higher tier. I asked a few questions to clarify the differences between the tiers of service; and, unprompted by me, the customer service rep said, “I see you have been a customer […]
Customers, and people in general, will generally say that prices are very important to their choices. They say if the price is too high, they will buy from someone else or just not buy at all. While there is always some truth in that, customers don’t always behave the way they say they will. So, […]
I have said it and written it repeatedly – customers don’t care about your costs. They care about the value of your price compared to their next best alternative. You can’t set high prices just because your costs are high. That said, if your costs decrease and your customers know it, they will often view […]
Pricing power is a simple concept. It really reflects the ability of the selling entity to set or raise prices to the point where they capture the value provided to the buyer. I have written about the USWNT players’ personal pricing power and pricing power in healthcare, however, occasionally there are external factors that seem […]
I have had several conversations recently with potential clients who want help in setting their pricing strategies. When asked what their current pricing strategies are, the most common answers have been, “We do it by gut feel” or “We take last year’s price and adjust it for our cost changes.” My second question is […]
The women’s World Cup Soccer tournament has started, and the US women have won their first two games. At the same time, the subject of pay for the United States Women’s National Team (USWNT) has received more attention. In 2016, five of the more prominent members of the team filed a complaint with the EEOC, […]
Just before the Memorial Day weekend, it was reported that AveXis, a Novartis division, was launching a new gene therapy treatment at a price of $2.125 million. Predictably, there were soon numerous articles and tweets bemoaning the price, calling the company evil, and demanding more regulation of drug pricing. My solution is simpler. Use the […]
