We have written many times before in our blogs and newsletters that customers are not all equal. They have different needs, they value product attributes differently, and they have varying levels of price sensitivity. In order to address these multiple customer segments, it is common to have multiple variations of a product or service offering […]
“the first line of price negotiations has been switched to the inside sales team” Today customers look to inside sales for more. For instance, for most distributors, the first line of price negotiations has been switched to the inside sales team. Front line technical support falls on to inside sales to do some logistical matters […]
If you’ve ever tried to take an Uber during a rainstorm or on a holiday, you know why surge pricing can be unpopular. Then again, if you’ve been picked up by that Uber while other people were still waiting for cabs, you know why it also makes sense and provides benefit to customers. Surge pricing which is another name […]
Abstract The high market price of new anticancer agents has stimulated debate about the long-term sustainability of healthcare systems and whether these new agents can continue to be supported by public healthcare or by private insurers. In addition, some drugs have been approved with limited clinical benefit, raising concerns about setting a minimum requirement for […]
This is the third 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 building measurements and a metrics plan for pricing team member assessment and incentives. All pricing practice leaders know a disciplined […]
Last month I wrote a post Dealing with Customer Complaints in which I mentioned some personal dealings with Verizon that were unsatisfactory. In the post I wrote that it felt like playing Hunt the Wumpus. I also refer to it as a Where’s Waldo pricing strategy. I know Waldo is in there, in the form […]
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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