September 2013 Authors: Byron Deeter Related Strategies: Cloud Computing The explosion of cloud computing and low friction delivery models, is also creating the opportunity to completely reinvent the software business models that accompany these products. As a result, tremendous innovation is occurring in terms of product pricing and packaging. Although the “flinch test” (keep raising the price […]
This is a guest post by Gregory Ciotti from Help Scout. When we last examined some research on pricing and behavioral economics the topic was very well received, but apparently I raised as many questions as I answered, because I got a ton of emails that day! Perhaps that is somewhat my fault — in addressing topics like ‘bundling,’ I definitely left out […]
In my post 5 Secrets to Selling at Full Price, I promised I would expand on each of the secrets. Here is the first one: 1. Find better customers. Selling to the wrong group is always going to create pricing pressure. Just because a customer shows interest doesn’t make them a customer. I realize that goes […]
We are continuing on our quest to look at the 5 Secrets to Selling at Full Price. Here is Secret #2: 2. Position your product/service to warrant full price. If your customers see what you’re selling as being cheap, then they’ll expect you to sell it to them at a reduced price. Customers will always compare. […]
Putting a price on software is one of the most difficult decisions for developers when releasing their own products. We’ve previously written about how to approach pricing like a science and how to address specific technical audience. We also shared a post about learning from price changes. This time we want to share some insights from over 2 years […]
For most brick-and-mortar bitcoin merchants, collecting payments is as simple as selecting a processor and advertising to the bitcoin community. Pain points still persist though, most notably when it comes to converting fiat prices to bitcoin prices. As our Bitcoin Price Index (BPI)illustrates daily, it’s not the kind of task you want to handle with a […]
Pricing is a discipline. And that discipline has existed for more than a century and has evolved from a pure economics discipline to be part of the marketing construct. The reality is that pricing is still a fairly neglected element of the marketing mix (the 4 Ps), and that most firms ignore the need to embrace […]
The reason so many people want to be transactional and agree to a discount their price is that it eliminates one of the major areas of conflict in sales. If you agree to your prospective client’s price, then there is no conflict, you just say “yes” and you are off to the races. While this approach eliminates a […]
T-Mobile is basking in the limelight courtesy of masterful marketing and an aggressive promotion launched last week. First, its CEO, John Legere, was ceremoniously kicked out of a Las Vegas party thrown by wireless rival AT&T. But what’s really generating buzz is the fourth largest U.S. wireless carrier’s offer to pay up to $650 for new customers to switch to its […]
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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