Tag: Pricing Backlash

Dynamic pricing: An efficient solution for true demand response enabling | Journal of Renewable and Sustainable Energy

Dynamic pricing: An efficient solution for true demand response enabling | Journal of Renewable and Sustainable Energy

ABSTRACT A dynamic pricing scheme, also known as real-time pricing (RTP), can be more efficient and technically beneficial than the other price-based schemes (such as flat-rate or time-of-use pricing) for enabling demand response (DR) actions. Over the past few years, the advantages of RTP-based schemes have been extensively discussed for DR purposes in electricity markets; […]

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 Low Prices to Grab Market Share | Strategic Pricing Solutions

When to Use Low Prices to Grab Market Share | Strategic Pricing Solutions

I don’t use Uber often, but our family recently used it to take us to the airport. When we returned, we just walked outside the airport and hopped in a taxi.  The price of the Uber ride ended up about 35% lower than the price of the taxi.  That is not news.  It has been […]

Dynamic Pricing and Surge Pricing are Good for All | Strategic Pricing Solutions

Dynamic Pricing and Surge Pricing are Good for All | Strategic Pricing Solutions

If you’ve ever tried to take an Uber during a rainstorm or on a holiday, you know why surge pricing can be unpopular. Then again, if you’ve been picked up by that Uber while other people were still waiting for cabs, you know why it also makes sense and provides benefit to customers. Surge pricing which is another name […]

Report: You Can Charge Women More, but Should You? | Harvard Business Review

Report: You Can Charge Women More, but Should You? | Harvard Business Review

The New York City Department of Consumer Affairs (NYDCA) recently released a well-researched report documenting similar products having different prices based on the target customer’s gender. Target, for instance, charged $24.99 for a red scooter and $49.99 for a scooter that appeared to be identical — except for its pink color. (Note: that’s a 100% difference!) […]

A Study of Gender Pricing in New York City | New York City Department of Consumer Affairs

A Study of Gender Pricing in New York City | New York City Department of Consumer Affairs

The New York City Department of Consumer Affairs (DCA) is responsible for maintaining a fair and vibrant marketplace. To this end, DCA conducted a first-ever study of the gender pricing of goods in New York City across multiple industries. The industries studied for this report include: toys and accessories, children’s clothing, adult clothing, personal care […]

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 […]

Blog: Pricing to Value – Gilead Shows the Way | Strategic Pricing Solutions

Blog: Pricing to Value – Gilead Shows the Way | Strategic Pricing Solutions

In late 2013, Gilead Sciences released Sovaldi, a drug that can cure Hepatitis C in 90 days when used in combination with other anti-viral drugs.  The initial price was more than $1,000 per day, and the total cost of treatment could exceed $80,000.  In spite of a 90% cure rate for a disease that previously […]