Blogs & Articles

New Year’s Resolutions for Pricing 2018 | Strategic Pricing Solutions

New Year’s Resolutions for Pricing 2018 | Strategic Pricing Solutions

I resolve to: Set prices according to the value we bring to customers, not according to my costs. Use the rich data I have in my transactions and CRM interactions to better understand my customers’ needs, how they react to prices and offers, how their prices compare to similar customers and situations, the reasons we […]

A Post-Christmas Carol | Strategic Pricing Solutions

A Post-Christmas Carol | Strategic Pricing Solutions

Customers are smart, they’re cagey and quick; They know their vendors can be like St. Nick. When quotas are missed in the first period or two, Gifts and discounts for customers old and new. “Hey Dasher, hey Dancer, hey Prancer and Vixen, It’s time for your sales team to be a blitzin’. Come to my […]

The Problem With Fake Discounts | Strategic Pricing Solutions

The Problem With Fake Discounts | Strategic Pricing Solutions

If you are a seller employing the large discount strategy, you should analyze your transactions to see what proportion of your sales are transacted at the full list price.  If only 10% to 15% of your sales are at list price, it is pretty clear your customers recognize the fake discounts.  Unfortunately, it is not […]

Dynamic pricing: An efficient solution for true demand response enabling | Journal of Renewable and Sustainable Energy

Dynamic pricing: An efficient solution for true demand response enabling | Journal of Renewable and Sustainable Energy

ABSTRACT A dynamic pricing scheme, also known as real-time pricing (RTP), can be more efficient and technically beneficial than the other price-based schemes (such as flat-rate or time-of-use pricing) for enabling demand response (DR) actions. Over the past few years, the advantages of RTP-based schemes have been extensively discussed for DR purposes in electricity markets; […]

How to Value-Price Durability | Strategic Pricing Solutions

How to Value-Price Durability | Strategic Pricing Solutions

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 […]

Books

Book: Dollarizing Differentiation Value – A Practical Guide for the Quantification and the Capture of Customer Value

Book: Dollarizing Differentiation Value – A Practical Guide for the Quantification and the Capture of Customer Value

Summary: Now is the time to answer that “value” question so well and so completely that your organization thrives. The biggest winners in the 21st century will have value-based strategies, value-based innovation, value-based marketing, and value-based pricing. There has never been a more exciting and lucrative time to pay attention to value and turn a […]

Book: Pricing and Human Capital

Book: Pricing and Human Capital

Summary: The pricing profession has come a long way: from having a pure clerical function back in the 1970s to a more strategic one today, pricing professionals are increasingly accepted as fully fledged members of marketing and finance teams. However, in many of these organizations, pricing professionals are often misunderstood and neglected from a career […]

Book: 8 Keys to Price Optimization

Book: 8 Keys to Price Optimization

Summary: Price optimization enables companies to move beyond cost-plus pricing and determine the range of prices that could be charged for a variety of customers and products. Price optimization can increase current operating income by 1 to 4% of sales, which in many cases will translate into a 20 to 50% increase in operating income. The most sophisticated […]

Book: Collection of the Best Pricing Books and E-books

Book: Collection of the Best Pricing Books and E-books

As a service to pricing professionals, we have compiled a collection of the best pricing focused hard-copy books and e-books available. The entries for each book are tagged by subject matter, include the author(s), publisher, date of publication, a picture of the front cover, and a brief summary. For your convenience, we have also included a […]

Book: Pricing and the Sales Force

Book: Pricing and the Sales Force

Summary: Pricing and the Sales Force is the first book to link pricing strategy and the sales force together. Pricing strategy is now well established as an important means of driving profits for many organizations. Countless companies are now mastering price-setting. But what about “price-getting” – converting those list prices into the realized sales, and […]

Reports

Report: A Pricing Playbook for Emerging Markets | BCG

Report: A Pricing Playbook for Emerging Markets | BCG

Pricing in emerging markets—always tricky to manage because of fluctuating inflation rates, shifting interest costs, and volatile currencies—is becoming even harder for multinational corporations (MNCs) to master. These companies face rising competition, from other MNCs in premium niches and from local giants in middle-market segments, that is squeezing MNCs’ profit margins in many emerging markets. […]

How retailers can improve price perception–profitably | McKinsey & Company

How retailers can improve price perception–profitably | McKinsey & Company

New methodologies, powered by big data and advanced analytics, can help retailers attract value-conscious consumers without sacrificing margins. As retail executives know all too well, most pricing decisions require a trade-off between margin and price perception. To avoid a “race to the bottom”—the self-defeating exercise of trying to beat every competitor’s price on every item—retailers […]

Report: Disruptive strategy: Usage-based pricing | Deloitte University Press

Report: Disruptive strategy: Usage-based pricing | Deloitte University Press

Today, pay-per-view isn’t the only thing you buy on a per-use basis. Companies are now offering usage-based pricing on everything from cars to car insurance, giving them rich insight into how, when, and where customers use products and threatening to upend traditional business models where revenues depend on ownership. OVERVIEW Align price with use Reducing […]

Report: You Can Charge Women More, but Should You? | Harvard Business Review

Report: You Can Charge Women More, but Should You? | Harvard Business Review

The New York City Department of Consumer Affairs (NYDCA) recently released a well-researched report documenting similar products having different prices based on the target customer’s gender. Target, for instance, charged $24.99 for a red scooter and $49.99 for a scooter that appeared to be identical — except for its pink color. (Note: that’s a 100% difference!) […]

Report: Holiday pricing: Making sense of the madness | Bain & Company

Report: Holiday pricing: Making sense of the madness | Bain & Company

Holiday sales are growing in line with expectations, although the level of promotional activity raises questions about the most important outcome: profits. In this issue, we recap November and early-December sales results, take an in-depth look at the volume of promotions and its implications, and offer ideas for infusing more profitable strategies into holiday pricing. […]

Videos

VIDEO: SALES TIP – Number One Way to Avoid a Discount | The Sales Hunter

VIDEO: SALES TIP – Number One Way to Avoid a Discount | The Sales Hunter

Do you really believe you can’t sell without a discount? I argue that if you are always defaulting to using a discount, then you are not really selling.  I hear from people all the time who ask me, “How do I sell without discounting?!” You have to stop thinking that your customers are buying, when in reality they […]

Video: Volkswagen Passat – The [Lemonade] Stand | Volkswagen

Video: Volkswagen Passat – The [Lemonade] Stand | Volkswagen

A fabulous car commercial that covers perceived value, customer segmentation, and dynamic pricing. It uses the proven pricing training ground of the lemonade stand pricing problems.  VolkswagenCanada Passat owners beware: People will think you paid more than you did. Starting at just $23,975, the Volkswagen Passat comes with standard features (18″ alloy wheels, Kessy Keyless access and […]

Video: Ten Pricing Lessons from Cartoons

Video: Ten Pricing Lessons from Cartoons

A wonderful collection of pricing wisdom found in popular cartoons and comic strips.    PricingProphets This is the sixth in a series of “Ten Things” presentations, in which Jon Manning, the Founder & Managing Director ofhttp://www.PricingProphets.com, looks at ten pricing lessons from cartoons

Video: Pricing Manager’s First Day

Video: Pricing Manager’s First Day

A very popular pricing animated video that captures the struggles that come with being a Pricing Manager. Pricing Manager’s First Day  Tanglethatch

Video: THE WICKED SICK PROJECT – BMX

Video: THE WICKED SICK PROJECT – BMX

One of our favorite videos that take a unique route to explain how much perceived value is at the heart of successful premium pricing programs.  jimboingo A rad to the power of sick test that sets out to prove the power of creativity by George Patterson Y&R Melbourne. We bought a BMX off ebay, then […]

Training

European Pricing Summit 2018 | Finance iQ

European Pricing Summit 2018 | Finance iQ

  About the European Pricing Summit 2018 The advent of disruptive technology, growth of e-commerce and increasing competition from global markets are just a few of the reasons why leading companies are spending time and money to develop a pricing strategy that works. Many pricing leaders are wondering what direction to take their pricing strategy […]

2017 European Pricing Workshops & Conference in Barcelona Recap | Professional Pricing Society

2017 European Pricing Workshops & Conference in Barcelona Recap | Professional Pricing Society

The PPS 13th Annual European and Global Pricing Workshops and Conference was a huge success! Our conference was the highest-attended European Conference to date! Over 200 professionals from over 30 countries, representing 80 companies, making #PPSBCN17 one of the largest Conference events to date. Our agenda included 7 full-day workshops covering important topics such as Core […]

The San Diego Pricing Conference Recap #PPSSD17 | Professional Pricing Society

The San Diego Pricing Conference Recap #PPSSD17 | Professional Pricing Society

An incredible time was had in San Diego during the 28th Annual Fall Pricing Workshops and Conference event! The standard two full-day Workshop series was an exciting time in pricing education, many first-time attendees raved about the lineup. Attendees filled Conference rooms throughout the day for interactive learning and were eligible to take a Workshop […]

Crapido: A New Responsibility Assignment Matrix | Professional Pricing Society

Crapido: A New Responsibility Assignment Matrix | Professional Pricing Society

Why is there a need for CRAPIDO? Discover why one pricing professional strongly believes the industry can use another Responsibility Assignment Matrix. Businesses must clearly define roles, especially within pricing, and without organization, they become inefficient, ineffective, underperforming and a drain. CRAPIDO is a way to impart a bit of discipline into the current system. […]

Conference: Pricing & Revenue Optimization Executive Forum 2017 | IQPC

Conference: Pricing & Revenue Optimization Executive Forum 2017 | IQPC

Date: August 23-24, 2017 Location: Chicago, IL Blending Art and Science to Spark the Next Pricing Evolution – A More Meaningful Way for Qualified Senior Pricing Leaders to Share Strategic Insights A Series of Facilitated Executive Roundtables for the Senior Pricing Professional Bringing together a roster of master innovators in the pricing space, the inaugural Pricing and Revenue […]