Tag: premium pricing strategy

How to Segment When All Customers Look Alike | Strategic Pricing Solutions

How to Segment When All Customers Look Alike | Strategic Pricing Solutions

Customer segmentation is a simple concept – identify groups of customers who tend to have similar levels of price sensitivity and set distinct prices for each group.  Unfortunately, many companies either think all their customers are the same, or they don’t have enough information to create segments.  In particular, we often see this in retail […]

Trump Promises Lower Drug Prices, but Drops Populist Solutions | The New York Times

Trump Promises Lower Drug Prices, but Drops Populist Solutions | The New York Times

WASHINGTON — President Trump vowed on Friday to “bring soaring drug prices back down to earth” by promoting competition among pharmaceutical companies, and he suggested that the government could require drugmakers to disclose prices in their ubiquitous television advertising. But he dropped the popular and populist proposals of his presidential campaign, opting not to have […]

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 […]

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 […]

Report: A Pricing Playbook for Emerging Markets | BCG

Report: A Pricing Playbook for Emerging Markets | BCG

Pricing in emerging markets—always tricky to manage because of fluctuating inflation rates, shifting interest costs, and volatile currencies—is becoming even harder for multinational corporations (MNCs) to master. These companies face rising competition, from other MNCs in premium niches and from local giants in middle-market segments, that is squeezing MNCs’ profit margins in many emerging markets. […]

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 […]