Pricing Myopia
Executives often suffer from pricing myopia. They don’t see the freedom they have to use pricing to enhance the performance of their businesses and even create competitive advantage. Because of their distorted or limited vision, they underestimate their power to manage pricing, mistakenly believe that their customers are paying the amounts stipulated by their pricing guidelines, passively accept the prevailing approaches to pricing in their … [ Read more ]
Content: Article | Authors: George Stalk Jr., Peter Stanger, Peter Wetenhall, Philippe Morel | Source: Boston Consulting Group (BCG) | Subjects: Marketing / Sales, Pricing
Profit Parabolas: Bringing Science to the Art of Pricing
Pricing is becoming more science than art. But because the science is complex, most managers rely heavily on art-or instinct. As a result, they almost always miss the pricing sweet spot. A powerful, fact-driven tool called the profit parabola can help managers monitor competitors’ prices, learn how their pricing affects their own position, respond intelligently to competitors’ moves, and test incrementally or radically different pricing … [ Read more ]
Content: Article | Authors: Marin Gjaja, Peter Stanger, Wouter-Jan Schouten | Source: Boston Consulting Group (BCG) | Subjects: Marketing / Sales, Pricing