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Tag: retail

How retailers can improve price perception–profitably | McKinsey & Company

How retailers can improve price perception–profitably | McKinsey & Company

New methodologies, powered by big data and advanced analytics, can help retailers attract value-conscious consumers without sacrificing margins. As retail executives know all too well, most pricing decisions require a trade-off between margin and price perception. To avoid a “race to the bottom”—the self-defeating exercise of trying to beat every competitor’s price on every item—retailers […]

Paper: Pricing – Time for Science to Replace Gut Instinct | RIS News

Paper: Pricing – Time for Science to Replace Gut Instinct | RIS News

When deployed correctly, pricing optimization solutions are powerful tools that deliver a clear business edge to retailers. Not only are they capable of setting prices for promotional products that consistently hit sell-through goals, but they can also help the entire product catalog sell at full price. But the catch is these sophisticated solutions can only […]

Blog: Retailer Pain Offers B2B Pricing Lessons | Strategic Pricing Solutions

Blog: Retailer Pain Offers B2B Pricing Lessons | Strategic Pricing Solutions

A recent article in Business Insider, No one pays full price anymore – and it’s terrifying companies, highlighted the perils of discounting.  The conclusion of the article was “Consumers just don’t want to pay full price for anything anymore.” While the pricing strategies of most retailers rarely start with discounting, they have trained their customers […]

Blog: Can Jet.Com Make it Up on Volume? | Strategic Pricing Solutions

Blog: Can Jet.Com Make it Up on Volume? | Strategic Pricing Solutions

A little more than a month ago, Jet.com opened its digital doors for business.  Jet’s stated goal is to “make shopping more transparent, more efficient, and at the same time, a little more fun.”   The pitch to potential customers is they will save money buying things on Jet.com instead of Amazon, Costco, and other online […]

Blog: Customer Segmentation in the Wireless Market | Strategic Pricing Solutions

Blog: Customer Segmentation in the Wireless Market | Strategic Pricing Solutions

For years cell phone service came with 2-year contracts and included a discount on a new telephone.  In the past year, however, T-Mobile started a trend of unbundling the purchase of the phone from purchase of talk, text, and data services.  Now all of the major carriers have moved to the unbundled model, with prices […]

Report: Discounting Remains Most Popular Pricing Strategy: Report | Twice.com

Report: Discounting Remains Most Popular Pricing Strategy: Report | Twice.com

Discount pricing remains the most popular pricing strategy among retailers, a new study shows, although product bundling and “belowcompetition” pricing are employed nearly as frequently. The report, by Gartner subsidiary Software Advice, also found that most retailers use more than 10 pricing strategies in their go-to-market plans, and that more than half use software to […]

Blog: The Downside of Black Friday and Other Price Competition | Strategic Pricing Solutions

Blog: The Downside of Black Friday and Other Price Competition | Strategic Pricing Solutions

Black Friday was disappointing for retailers this year.  Sales were down 11% from last year, ‘Black Friday’ Fades as Weekend Retail Sales Sink, and I expect the retailers to report lower margins when they report earnings in the coming months.  This follows a constant bombardment of email boxes and television ads announcing early sales and deeper discounts. […]

Report:  $ or Dollars – Effects of Menu-price Formats on Restaurant Checks | Cornell Center for Hospitality Research

Report: $ or Dollars – Effects of Menu-price Formats on Restaurant Checks | Cornell Center for Hospitality Research

Abstract: Empirical research on menu design and price presentation has focused primarily on menus’ effects on consumers’ attitudes, and not necessarily on actual purchase behavior. This study examines how customers reacted to menus’ price formatting in terms of actual sales, as measured by check totals for lunch at St. Andrew’s, the restaurant at the Culinary […]

Report: Pricing for penetration | Bain & Company

Report: Pricing for penetration | Bain & Company

Pricing has long been one of the most vexing challenges for consumer goods companies. Many face ballooning trade rates with collapsing ROIs, volatile commodity prices pressuring gross margins, contentious customer negotiations and sticky retail price points. Now, with mounting evidence that household penetration is the most important factor for growing brands, more consumer goods executives […]

Paper:  Making Money by Giving It for Free – Radiohead’s Pre-Release Strategy for In Rainbows | Harvard Kennedy School

Paper: Making Money by Giving It for Free – Radiohead’s Pre-Release Strategy for In Rainbows | Harvard Kennedy School

Abstract In 2007 a prominent British alternative-rock band, Radiohead, pre-released its album In Rainbows online, and asked their fans to “pick-their-own-price” (PYOP) for the digital download. The offer was available for three months, after which the band released and commercialized the album, both digitally and in CD. In this paper, we use weekly music sales […]