Blog
Recently I had a conversation with a friend (let’s call her Helen) who wanted to buy a new iPhone, however she was frustrated that the iPhone 8 offers little in enhancements from her current iPhone 6. She was contemplating ordering an iPhone X. When I asked why Helen needed a new phone at all, she […]
Netflix recently announced a 10% increase in the price of its most popular plan from $9.99 per month to $10.99. The price of their highest tier plan is increasing by nearly 17%. Similarly, Apple recently announced the price of the iPhone X will be $999, a 25% increase over their previously highest priced phone. However, […]
It’s business planning season! Right now, many companies are working hard to develop new price lists that will be effective early in January. These firms are analyzing their data to understand their competitive positioning, determine the differences in value between their own products and services vs. competitors, segment their customers, categorize their products, estimate changes […]
Earlier this year, my wife and I moved to Florida. With year-round nice weather, palm trees and white sandy beaches, it seems like Paradise. Last week Hurricane Irma came through and reminded us of the true price of paradise. It also reminded me that buyers make trade-offs in every purchase decision, and your pricing strategies […]
Much has been written in the past few weeks about the impact Amazon would have on the grocery industry after acquiring Whole Foods. The Washington Post called it “a clear signal of sweeping changes to come”, and the New York Times cited “the Amazon Effect” after comparing before and after prices on a basket of […]
All companies want to grow. The tough question is how to do it profitably and sustainably. A common approach for many manufacturers is to expand the number of channels through which their products are available to reach customers who otherwise might not try them. However, if that is not done with a proper understanding of […]
Last week Andy Kessler wrote an article in the Wall Street Journal, The High Cost of Raising Prices, which might scare you into thinking you will ruin your business by raising prices. While I usually enjoy reading his articles and I found a few valid points, I mostly disagree with this article. Don’t fall for […]
The Atlanta Falcons have established a new concessions pricing strategy for the coming season, and they will have the lowest prices in the NFL. They are lowering most prices in an effort to be more fan friendly. I am not a scrooge, but I think it is a bad decision. At best, they will make […]
Last week there was an article in the Wall Street Journal, So Long, Hamburger Helper: America’s Venerable Food Brands Are Struggling which discussed the declining market shares of some of the largest packaged food companies. It is not a surprise; the large CPG companies have been losing customers for the past few years on multiple […]
One of the more common things we see is pricing strategies and tactics succumbing to fear, uncertainty and d-doubt (FUDD). When that happens, companies frequently begin a cycle of value-destroying pricing decisions. You can prevent those decisions by recognizing the symptoms and stopping Elmer Fudd from leading your pricing strategies.
