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.
Improving your pricing strategy is a dependable way for your organization to improve its bottom line & profitablity. We discuss several steps on roadmap to strategy improvement.
Leveraging price optimization for long term growth can be a complicated process. We discuss the importance of calculating the value of a long term customer relationship.
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.
Your customers may love discounts but are they good for business? We shed some light on the dark side of discounting and how they might negatively impact your business.
The newspaper and information publishing industry are finding it more and more difficult to maintain profitable in such an aggressive market. Experiencing intense pressure from advertisers and consumers, industry leaders are looking for new ways to capture value and maintain margins. One strategy that we’ve seen work is module advertising.
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.
With the announcement of Brexit came many unknowns. We discuss strategies that your pricing department can use to counter the ambiguity and achieve a winning pricing strategy.
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.
Premier League football clubs are in a strong position to maintain price increases. Pricing Solutions applies the 5Cs of Pricing Strategy to see if the League is reaching a tipping point.
Managing price is increasingly difficult and complex for Medical Technology companies. Internal development of the pricing function, organization and skills is a must. Read our thoughts on the state of pricing in the medical device industry…
Companies must become more adept at developing pricing strategies that address the challenges of price transparency or be faced with conflict both internally with channel partners, and with end users
Many organizations begin their annual pricing process in July in order to be ready to start invoicing Jan 1st. By developing a pricing strategy as part of your annual planning process you can achieve profits well in excess of just taking a uniform increase.
In recent years we have seen the sporting world borrow pricing strategies from other industries, and vice versa. In such a diverse business environment what is the optimal pricing strategy for events, and what can other sectors learn from developments in ticket pricing?
Every business has a pricing process. Find out where your organization falls in the 5-Levels of World Class Pricing. Not long ago I thought it was time to “get personal about pricing,” and wrote World Class Pricing: The Journey. More than 20 years of experience and 700 projects went into developing a roadmap to pricing […]
Spring is an ideal time to revisit old pricing 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.
President Paul Hunt, continues his discussion of customers, competition, costs, capacity/cycle, explaining how the socialization of the 4Cs is essential to achieving buy-in to your pricing strategy. Paul also talks about common pricing challenges and mistakes, and explains how your organization can avoid them.
Paul Hunt, President of Pricing Solutions, discusses the importance of developing a well-articulated Pricing Strategy, the challenges of pricing globally and four key ingredients in an effective Pricing Strategy.
Quick acceptance or rejection of a new product is most common for everyday consumer goods. Speed of adoption can have a significant impact on the pricing strategy surrounding a new product launch.
Good negotiation is a commendable talent, but businesses need the skills to deal with good negotiators. Protecting your profitability from good negotiators requires ardent compliance to pricing policies, a flexible pricing infrastructure and the ability to say “no”.
Far from being the first to take action, a true price leader is able to consistently execute pricing actions that result in a desired effect. Much like in a game of chess, a pricing leader devotes the time and resources to understanding the motivations and aspirations of its competitors and to building the skills necessary to think several pricing moves into the future.
We find that companies often treat bundling as purely a marketing tactic versus a component in a broader pricing strategy. It is not uncommon for companies to incorporate terms and features into a sale without understanding their inherent value.
On May 4th the Canadian government officially stopped production of the penny, and will now be using “Swedish Rounding”. There may be significant implications for pricing, after all a 1% improvement in price leads to a 12.5% improvement in corporate profitability for the average company.
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.
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 (e.g. Walmart, Dell, Private Label).
If a consumer is shopping for an exclusive brand and likes the idea of buying smart, then many would conclude they can save some money by buying online from a country that sells it cheaper. However, the truth is that they probably won’t succeed; at least not online.
Just when things were looking bleak for Netflix they caught a break as Bank of America came along with their debit card pricing fee. Bank of America has taken such a beating for that decision that if there was such a thing as a Pricing Piñata it would have their logo emblazoned all over it.
Pricing strategy is a hot topic these days. Over the past 20 years, we have helped many companies develop, refine or transform their pricing strategy, but today we get requests for help more frequently than ever before. So why the surge of interest now?
Finance Minister Jim Flaherty recently announced his desire to commission a Senate Committee into Canadian pricing. There have likely been a number of triggers for his reaction, but J Crew, a specialty apparel retailer, entering Canada at a significant price premium to its US pricing and subsequent reversal I am sure was part of the cause.
Netflix has been getting a lot of attention lately for its new pricing strategy. If you have kept an eye on the matter you will have noticed that there is an interesting paradox. Consumers hate it but analysts love it. They may lose as many as 2.5 million customers but profitability should go up.
A consultant at Pricing Solutions recently presented some learnings he took away from an IBM conference on the topic of analytics. An important topic was the emerging frontier of using real time data to make real time decisions. From a pricing perspective, how could this level of data analytics move companies forward in their ability to be good value based pricers?
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.
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.
Competitive pricing is one of the most thrilling and terrifying aspects of pricing – thrilling because it is a high-stakes game, and terrifying because you can get locked into a price war and end up swimming in a sea of red ink.
For many lost deals, price was not the factor; perceived quality was the driving force behind the decision. Collect customer feedback and use lessons learned to refocus your service-delivery model and win more deals.
As commodity costs skyrocket, there has never been a greater need for companies to implement strategic price increases. Unfortunately, many organizations are afflicted with Price Increase Rigor Mortis (PIRM), an insidious disease that paralyzes their ability to raise prices and ravages their bottom line.
Why on earth did they buy that there? Sometimes, it seems customers act irrationally when it comes to their buying behaviours. But that is never the case. Customers always behave in ways they perceive are in their own interest. And yet, the rationale behind these decisions is often puzzling.
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 […]
The thing I love about pricing is it is all around us. Each week I plan on sharing some of my pricing experiences during that week. Hopefully, you will find them interesting and entertaining. Last week, I had two pricing experiences that got me thinking about how to price. One was a scam that was […]