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 […]

Execute Your Plans with Courage, Not Hubris | Strategic Pricing Solutions

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 […]

Predicting sales of online products from advertising language | Stanford News

Predicting sales of online products from advertising language | Stanford News

Challenges of language analysis Online vendors have long struggled to figure out why the exact same product offered on different websites has varying sales figures. Previous research focused on online consumers’ reactions to product reviews and word-of-mouth recommendations. But product descriptions haven’t received as much attention because studying the effects of language on consumer habits […]

Customer Value: The Price of Paradise | Strategic Pricing Solutions

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

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

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 […]