Tag: Customer Segmentation

Paper: Pricing Best Sellers | Journal of Interactive Marketing

Paper: Pricing Best Sellers | Journal of Interactive Marketing

More reasons why online mass merchandisers are category killersOne of the great pleasures for book lovers of all ages is the opportunity to settle into a comfortable armchair amid the stacks of an expertly curated bookstore and peruse the pages of possible purchases. It’s an old story already that those opportunities are disappearing as online […]

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 […]

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 […]

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 […]

Focus on the Segments Before Lowering Prices | Strategic Pricing Solutions

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 […]

Don’t Chase Pricing Ghosts | Strategic Pricing Solutions

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 […]

Incremental Investments in Pricing Yield Big Returns| Strategic Pricing Solutions

Incremental Investments in Pricing Yield Big Returns| Strategic Pricing Solutions

All companies want to improve their profitability and deliver more value to their shareholders, but the best ways to do that are often debated. Pricing is the most powerful lever available to companies striving to improve profitability, but how to effectively use that lever may be unclear. Over the years we have talked with many […]