Summary: Prada stores carry a few obscenely expensive items in order to boost sales for everything else (which look like bargains in comparison). People used to download music for free, then Steve Jobs convinced them to pay. How? By charging 99 cents. That price has a hypnotic effect: the profit margin of the 99 Cents […]
No Sacred Cows | Strategic Pricing Solutions
The year 2016 is almost over. All businesses should reflect on what has worked, and what has not worked; and they should be prepared to adjust in 2017. That evaluation should include reviewing the results of decisions made regarding pricing strategies and tactics. Equally important, the evaluation should be rigorous and thorough, and there should […]
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 […]
Are Profit Vampires Sucking Your Blood? | Strategic Pricing Associates
Read excerpts of an article that highlights how important it is for distributors to implement proven scientific pricing and sales negotiations processes that will stop unnecessary discounting by sales people for small customers who promise to buy in volume, killing a deal’s profitability with free services, and empower them to negotiate with confidence when providing complex customer solutions. “The evil deeds […]
Don’t Chase Pricing Ghosts | Strategic Pricing Solutions
Today is Halloween, but it is no time to be spooked by the challenge of increasing prices to fully capture the value of your products or services. In nearly every company, opportunities exist to capture more value from select customers or products. However, those opportunities are often not where you think they are, so do […]
Making Money is the Objective | Strategic Pricing Solutions
Retail is an inherently low-margin business. (If you doubt it, just look at Amazon’s return on sales.) To survive, retailers use many tools to determine how they can sell more to customers and at higher prices. In recent years, data science has become a much more important part of the retail toolkit. By analyzing how […]
Connect with us on the following social media platforms.
