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.
The threat of commoditization is a reality for many marketers. We discuss pricing strategies that help marketers set prices to capture value.
Pricing low to gain volume is the oldest move in the pricing playbook. When does the price go so low that it communicates a lack of quality?
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.
After a recent visit to the barber, I was reminded the importance of a strong value proposition. Here are 3 of the lessons I learned.
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?
Are you at a cliff deciding whether you should cut prices to react to new market realities or stand pat and maintain gross margin?
01. Pricing Strategy
02. Pricing Analytics
03. Pricing Research
04. Pricing Transformation
05. Direct to Consumer Pricing
06. Tariff Pricing
07. Pricing Promotions
08. Pricing Training
01. North America
02. Europe & UK
03. Asia Pacific
04. Latin America
01. Pricing Strategy
02. Pricing Analytics
03. Pricing Research
04. Pricing Transformation
05. Direct to Consumer Pricing
06. Tariff Pricing
07. Pricing Promotions
08. Pricing Training
01. North America
02. Europe & UK
03. Asia Pacific
04. Latin America
