Tag: willingness to pay

Don’t Chase Pricing Ghosts | Strategic Pricing Solutions

Don’t Chase Pricing Ghosts | Strategic Pricing Solutions

Today is Halloween, but it is no time to be spooked by the challenge of increasing prices to fully capture the value of your products or services.  In nearly every company, opportunities exist to capture more value from select customers or products.  However, those opportunities are often not where you think they are, so do […]

Making Money is the Objective | Strategic Pricing Solutions

Making Money is the Objective | Strategic Pricing Solutions

Retail is an inherently low-margin business.  (If you doubt it, just look at Amazon’s return on sales.) To survive, retailers use many tools to determine how they can sell more to customers and at higher prices.  In recent years, data science has become a much more important part of the retail toolkit.  By analyzing how […]

Get the whole truth, not just anecdotes or opinions | Strategic Pricing Solutions

Get the whole truth, not just anecdotes or opinions | Strategic Pricing Solutions

Last week a friend told me that her sister’s business had overpaid their taxes and without justification the government would not refund the overpayment.  I was skeptical of the story and responded that there is a very clear process for requesting refunds of overpaid taxes or applying them to the subsequent year, and the IRS […]

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 […]

Fire Low Margin Customers as a Pricing Strategy? Not a Good One. | Strategic Pricing Solutions

Fire Low Margin Customers as a Pricing Strategy? Not a Good One. | Strategic Pricing Solutions

A somewhat popular tactic of companies looking to improve their margins is to identify their low-margin customers and fire them. They don’t go Donald Trump on their customers and say “You’re fired.” Instead the companies jack up the prices of those customers to either drive them away or make them profitable. Some companies even erroneously […]

How Our Brain Determines if the Product is Worth the Price | HBS Working Knowledge

How Our Brain Determines if the Product is Worth the Price | HBS Working Knowledge

Are consumers more likely to buy if they see the price before the product, or vice versa? Uma Karmarkar and colleagues scan the brains of shoppers to find out. by Carmen Nobel Think of the last time you went shopping. By the time you decided to buy a product, you knew both what you were […]

Paper: The power of pricing – How to make an impact on the bottom line | PWC

Paper: The power of pricing – How to make an impact on the bottom line | PWC

The majority of companies already recognise the potential for achieving growth through improved pricing. Understanding their customers and being able to react to them is often what drives pricing, yet in reality a very small proportion (13%) have an in-depth understanding of what their customers value and what they’re willing to pay. This may be […]

Paper: Call for Papers – Special Issue on: The Profit Impact of Pricing and Revenue Management | Journal of Revenue and Pricing Management

Paper: Call for Papers – Special Issue on: The Profit Impact of Pricing and Revenue Management | Journal of Revenue and Pricing Management

Guest Editor: Dr Stephan Liozu, Case Western Reserve University and Dr Andreas Hinterhuber, Hinterhuber & Partners In 2015, a special issue on “The Profit Impact of Pricing and Revenue Management” will be guest edited by Dr. Stephan Liozu and Dr. Andreas Hinterhuber. We invite the scientific and practicing community to submit papers by 15 June 2014 in order […]