Tag: premium pricing strategy

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 […]

How To Be A Price Leader Regardless of Size | Strategic Pricing Solutions

How To Be A Price Leader Regardless of Size | Strategic Pricing Solutions

A friend, also named Scott, recently sent me an article Leading the Way that discussed the frequency of small lubricant competitors leading the way in price changes.  The article, originally published in Lubes’n’Greases magazine demonstrated that independent producers increased prices of lubricants as frequently or more than the major producers.  The article reminded me you don’t have to be […]

7 Habits of Highly Effective Pricing | Strategic Pricing Solutions

7 Habits of Highly Effective Pricing | Strategic Pricing Solutions

Far too often we see organizations who say they want to improve their margins through better pricing, but their actions belie their statements.  Effective pricing does not occur by chance, and it does not result from following trite slogans.  Likewise, it is not an outcome of a one-time initiative from pricing consultants.  Effective pricing comes […]

Pricing the Trump Effect | Strategic Pricing Solutions

Pricing the Trump Effect | Strategic Pricing Solutions

Now that Donald Trump has been elected to be the next President of the United States, companies are looking at his campaign promises and cabinet appointments to assess what it means for their business.  In particular, companies are anxious about how a Trump Presidency will affect their cost of doing business.  This is all happening […]

Pricing Lessons from the Pharmaceutical Industry | Strategic Pricing Solutions

Pricing Lessons from the Pharmaceutical Industry | Strategic Pricing Solutions

Over the past several months, pricing strategies and practices of the pharmaceutical industry have been a subject of discussion, many times for the wrong reasons.  In particular, Valeant has come under extreme criticism for raising the prices of its drugs.  Another company, Turing Pharmaceuticals raised the price of Daraprim from $13.50 to $750.00, an increase […]

When to Use Multi-part Pricing | Strategic Pricing Solutions

When to Use Multi-part Pricing | Strategic Pricing Solutions

Earlier this month there was an article in the Wall Street Journal, Why Gadget Warranties Are (Almost) Never Worth It, pointing out the disadvantageous math behind most extended warranties and chastising sellers for offering them.  From my perspective extended warranties are good examples of when multi-part pricing makes sense, and they can be a win […]

Blog: Pricing Strategies that Last | Strategic Pricing Solutions

Blog: Pricing Strategies that Last | Strategic Pricing Solutions

I have written a number of blog posts about pricing strategies and business strategy in general.  Setting strategy is fundamentally about making choices regarding where you compete and how you win.  A very important part of making those choices is understanding how those choices affect other market constituents over a longer term.  More specifically, considering […]

Blog: Don’t Make Your Customers Angry | Strategic Pricing Solutions

Blog: Don’t Make Your Customers Angry | Strategic Pricing Solutions

Earlier this month Turing Pharmaceuticals raised the price of Daraprim from $13.50 to $750.00, an increase of more than 5000%.  There were immediate outcries of price gouging from customers who take the anti-malarial and HIV drug, insurers, doctors and politicians.   In the wake of the backlash, Turing reversed course last week and returned the drug […]