Price increases can be difficult to implement but there are tangible steps you can take to ensure a smooth transition and get customers on-board.
Applying pricing psychology could help your business capture substantial profits. We discuss how to leverage pricing psychology and research to get your organization out of cost plus pricing.
Pricing wars can be costly to your bottom line and your brand. Apply these tips and minimize your chances of a costly battle.
The pricing discipline has been growing rapidly as companies realize that investing in pricing can have long-term payoffs. But investing in pricing research can be a costly endeavour. We discuss the best ways to make sure that your pricing research returns positive ROI.
How do you remove the uncertainty around pricing your products? Using effective pricing research of course. These tips will ensure you get the most out of your research projects.
Are you making one of the three most common Pricing mistakes we see businesses making? If so, here’s our advice on how to correct them.
Quantified customer research is key to establishing the optimal price point and enables companies to capture more revenue. Companies leading the way in Pricing Strategy regularly conduct extensive Pricing Research. This is especially important in the Fashion industry, where customers’ perceived value can far exceed production costs.
Analytics and “big data” are everywhere, but a lot of businesses struggle to find any practical use for their data. We have identified five situations in which a business needs to make use of its data and implement an analytical process.
Lessons on effective communication for Senior Executives to data crunchers inspired by the 2014 Predictive Analytics World Conference. Big Data, Analytics, sexy models….albeit sexy predictive models (that’s right, math models!).
Picture the following scene: it’s nearing year-end and company executives are immersed in high-level strategic meetings. The objective: improve company profitability in the coming year.
In pricing we talk a lot about developing an ‘outside-in’ perspective; the type of perspective that helps you understand what customers are willing to pay for. Pricing research provides critical insight into your customers but watch out for common pricing pitfalls.
Cost based pricing is relatively simple. The simplicity of cost-based pricing is what attracts many companies. But we think companies would benefit from slowing down before adopting such a pricing strategy.
Good pricing means knowing where your power is. If the value is strong, there is an opportunity either to raise prices or grow share. If the value is weak, pricing must be adjusted accordingly to protect your brand. Otherwise, you risk becoming irrelevant.
It’s no wonder that Fortune 500 Companies are kicking off pricing initiatives at such a tremendous pace. The fruits of their efforts are continuing to make headlines. In last Friday’s Bloomberg’s Business Week there was a prominent article about the gains Goodyear has made by managing mix. Goodyear was facing a US$428million increase in raw material costs […]
by Paul Hunt – President Groupon Inc. An increasing number of clients have been evaluating the Groupon model and trying to assess whether it is right for their business. This is a difficult question that often leaves high level executives perplexed. In order to make an informed decision it is essential that you approach this […]
Use the Pricing Waterfall to Drive Profits For the average business, a mere 1% increase in price leads to a whopping 12.5% improvement in profitability. That’s the single most powerful lever a company has for boosting the bottom line. The pricing waterfall, a tool for identifying hidden costs and expenses, is one of the most […]
If your segmentation isn’t leading you into a discussion about behaviour, price structure, innovation and offer design, you probably have a large untapped opportunity. Read how segmentation can be the backbone of your pricing strategy.
Bon Jovi said “The only thing I like more than my wife is my money.” It’s rare that you find a rock star that likes his wife, but even more so to find one that that actually practices what they preach. While flipping through the June 6th 2011 issue of Forbes, I was surprised to learn […]
by Paul Hunt – President I have been watching the Stanley Cup Finals between Boston Bruins and Vancouver Canucks. One of the keys to Boston’s success has been the steady play of defenseman Tomas Kaberle. Kaberle was acquired from the Toronto Maple Leafs in February of this year. Kaberle is a talented player and as […]
by Paul Hunt – President After a busy month of travel to Europe and throughout the United States, on Saturday I learned of Aeroplan’s upcoming increase to the point requirements for a “free” flight. Aeroplan’s rationale for the point requirement increase is, in part, the increasing cost of rewards. This is not much different than […]
by Paul Hunt – President This week I had the opportunity to attend the Pharma-Market Research Conference in Toronto. All the major players in the pharmaceutical manufacturing industry were present; Pfizer, Bayer, GSK, Roche etc. One of the underlying themes of the speaker presentations and casual conversations I participated in was this: Why is it […]
From the Financial Post, March 01 – Pamela Heaven Why was your airplane overbooked? How come the price for a hotel room changes from day to day and how do car-rental companies know how many cars to have at any given airport? These questions and more can be answered by looking at the management science tools used […]
by Paul Hunt – President When I started working as a pricing consultant more than 20 years ago, I became really excited about the development of “conjoint analysis.” The word “conjoint,” which is short for “consider jointly,” is a method of measuring price elasticity. While most of us learned about price elasticity in university, it […]
by Paul Hunt – President Your boss gives you a seemingly impossible task: Increase profits by 12.5%. How do you respond? Some managers might spend a great deal of time trying to persuade the boss to reduce her expectations. A more productive response would be to improve management of prices by just 1%. If the […]
Posted by Greg Thomas, Pricing Research Director at Pricing Solutions. Many commodity prices seem to be starting to inflate again. Wheat in particular has shot up over 25% (see The Economist August 7th 2010 pp94). Wheat is an important input into numerous food products and will likely impact process food prices at retail in the coming […]
You might have noticed by now that Amazon and E-book pricing have been part of the biggest pricing news of the past week. This article touches upon an interesting pricing model, which the author believes will not benefit the actual publishers that wanted to enforce it.
Curious note about Ford’s new pricing strategy on one of their models. As I understood it, they are cutting prices on a new 2011 model but offering a premium for an upgrade to a smaller motor with less power, but with the perk of being an EcoBoost engine. Interesting. Click here to read more.
A new pricing strategy that allows buyers to dictate prices can lead to higher profits; if some of the proceeds go to charity. The strategy is called “pay what you want,” and has gained a foothold in several markets in the last few years. For instance, Radiohead famously let buyers name their own price for […]
Posted by Greg Thomas, Pricing Research Director at Pricing Solutions. I am currently reading the book “HARDBALL: are you playing to play or playing to win” by consulting heavy weights George Stalk and Rob Lachenauer. It is an interesting business strategy book with great case studies. The authors outline why companies today and tomorrow must […]
Jim Saunders recently wrote an interesting article published in the 2010 Journal of Professional Pricing from the Professional Pricing Society. The introduction sums it best. “When it comes to price optimization, many in the industry have come to conclude that in order to optimize prices, you should figure out the demand curve, link it to […]