Tag: value-based pricing

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 […]

Is Your Goal Volume or Profit? | Strategic Pricing Solutions

Is Your Goal Volume or Profit? | Strategic Pricing Solutions

If a company is creating a new market or new market niche, it may be important to build critical mass early in the process.  Doing so might enable them to spread their infrastructure costs over a wider base of business.  In that case, it could make sense to use penetration pricing which offers low prices […]

Workshop: Value-Based Pricing and Differential Value Quantification | Stephan M. Liozu, CPP

Workshop: Value-Based Pricing and Differential Value Quantification | Stephan M. Liozu, CPP

Date: Tue, 1 May, 2018 | 9:00 am – 4:00 pm Location: PPS Spring Conference | Loews Chicago O’Hare Rosemont Hotel in Chicago, IL DESCRIPTION Value-Based Pricing and Differential Value Quantification: Best Practices to Understand, Apply, and Operationalize in Your Organization (Level 600 Workshop) More firms and their pricing leaders are embarking on value-based pricing strategies every year. Research […]

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 […]

European Pricing Summit 2018 | Finance iQ

European Pricing Summit 2018 | Finance iQ

  About the European Pricing Summit 2018 The advent of disruptive technology, growth of e-commerce and increasing competition from global markets are just a few of the reasons why leading companies are spending time and money to develop a pricing strategy that works. Many pricing leaders are wondering what direction to take their pricing strategy […]

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 […]

Customer Value: The Price of Paradise | Strategic Pricing Solutions

Customer Value: The Price of Paradise | Strategic Pricing Solutions

Earlier this year, my wife and I moved to Florida.  With year-round nice weather, palm trees and white sandy beaches, it seems like Paradise.  Last week Hurricane Irma came through and reminded us of the true price of paradise.  It also reminded me that buyers make trade-offs in every purchase decision, and your pricing strategies […]

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 […]

Lower Concession Prices May Backfire | Strategic Pricing Solutions

Lower Concession Prices May Backfire | Strategic Pricing Solutions

The Atlanta Falcons have established a new concessions pricing strategy for the coming season, and they will have the lowest prices in the NFL.  They are lowering most prices in an effort to be more fan friendly. I am not a scrooge, but I think it is a bad decision. At best, they will make […]