A little more than a month ago, Jet.com opened its digital doors for business. Jet’s stated goal is to “make shopping more transparent, more efficient, and at the same time, a little more fun.” The pitch to potential customers is they will save money buying things on Jet.com instead of Amazon, Costco, and other online […]
SPA was featured in an article in the August 2015 issue of Distribution Center Magazine. It covers how important price perception is both internally and externally in distribution and offers great tips and advice to consider when planning and executing price increases. A preview of the article authored by Frank E. Hurtte Jr. who has 28 years of distribution […]
For years cell phone service came with 2-year contracts and included a discount on a new telephone. In the past year, however, T-Mobile started a trend of unbundling the purchase of the phone from purchase of talk, text, and data services. Now all of the major carriers have moved to the unbundled model, with prices […]
In late 2013, Gilead Sciences released Sovaldi, a drug that can cure Hepatitis C in 90 days when used in combination with other anti-viral drugs. The initial price was more than $1,000 per day, and the total cost of treatment could exceed $80,000. In spite of a 90% cure rate for a disease that previously […]
Execute Your Plans with Courage, Not Hubris | Strategic Pricing Solutions
If the team has identified certain products as being superior to competing alternatives, and has quantified how that superiority creates value for customers versus the alternatives, those products should have higher prices than the competitors’. If that means raising some prices more than expected, so be it. If the team is afraid to execute the […]
Customer Value: The Price of Paradise | Strategic Pricing Solutions
Earlier this year, my wife and I moved to Florida. With year-round nice weather, palm trees and white sandy beaches, it seems like Paradise. Last week Hurricane Irma came through and reminded us of the true price of paradise. It also reminded me that buyers make trade-offs in every purchase decision, and your pricing strategies […]
Segmentation Is a Critical Part of Channel Management | Strategic Pricing Solutions
The challenge that Under Armour is facing is the exact reason most luxury brands limit their channels to high-end stores where shoppers are not price-sensitive. If the luxury brands want to target more price-sensitive customers, they develop new products or brands that do not have the same cachet or premium pricing. By doing so, they […]
Lower Concession Prices May Backfire | Strategic Pricing Solutions
The Atlanta Falcons have established a new concessions pricing strategy for the coming season, and they will have the lowest prices in the NFL. They are lowering most prices in an effort to be more fan friendly. I am not a scrooge, but I think it is a bad decision. At best, they will make […]
Focus on the Segments Before Lowering Prices | Strategic Pricing Solutions
Last week there was an article in the Wall Street Journal, So Long, Hamburger Helper: America’s Venerable Food Brands Are Struggling which discussed the declining market shares of some of the largest packaged food companies. It is not a surprise; the large CPG companies have been losing customers for the past few years on multiple […]
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