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!) […]
We are off and running in the New Year. January is almost over, and it is time to begin measuring how effective your pricing structure and prices have been. Don’t forget – monitor, evaluate and report on the effectiveness of pricing is one of your New Year’s Pricing Resolutions. To be useful to your organization, […]
This is the second in a six part blog series on how manufacturers and distributors can apply Six Sigma methodology to the pricing function to generate repeatable margin gains. This blog covers what to consider in defining pricing team members roles and responsibilities and setting properly aligned goals. All pricing practice leaders know a disciplined […]
Mega-Manufacturers continue their proven strategy to sustain profitability in a slow growth economy – tighten up their supply chain. While this is not the first time for many distributors, unfortunately a good many sales managers have forgotten the lessons. Excerpts of the article authored by Frank E. Hurtte Jr. who has 28 years of distribution industry experience and […]
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 […]
Connect with us on the following social media platforms.
