I have written posts in the past about the importance of developing analytics that use your data to understand where your pricing is effective and where it is not. See Pricing Analytics Can Improve Your Profitability and Just the Facts Ma’am. One important caveat is that you must measure the right things and avoid creating cool charts that simply confirm your biases. Using your data to mislead others is as bad or worse than not analyzing it at all.
In July, the University of Pennsylvania announced the offering of online degrees in Masters and Bachelors programs, which are designed to appeal to price-sensitive students. Last month, Forbes Magazine published an article skeptical of Penn’s new offering, University Of Pennsylvania’s Louis Vuitton Problem. The Forbes article concluded that the online programs are really an experiment that is at risk due to the history of luxury brands damaging themselves by trying to appeal to more buyers. I agree it is an experiment; but unlike Forbes, I believe Penn will demonstrate that by keeping enough high-value features exclusive to the premium product, lesser-scoped products can be sold while protecting the brand’s image.
For my daily news, I subscribe to the Wall Street Journal, Miami Herald, New York Times, Washington Post, and the Florida Times-Union. Interestingly, I am likely to cancel the Times-Union soon because it charges the highest price and delivers the lowest quality. It is an excellent example of a business that tries to save itself as markets change by cutting costs and raising prices. However, the Times-Union does not appear to be getting healthier. More likely the paper is circling in a death spiral. The good news is we can all learn what not to do in those situations.