122 Posts Found

Changes in technology and a greater acceptance of dynamic pricing among consumers are prompting more industries to consider deploying this type of pricing mechanism, even though the concept has been around for more than 30 years. This article highlights four types of dynamic pricing and three criteria to consider if using it.

Content: Article | Source: Knowledge@Wharton | Subject: Pricing

Is it worthwhile for retailers to experiment with “pay what you want” pricing? Shelle Santana unmasks the surprising logic behind how much customers will pay, and when. One finding: sellers can dramatically change what some buyers are willing to pay.

Content: Article | Author: Michael Blanding | Source: Harvard Business School (HBS) Working Knowledge | Subject: Pricing

Setting the right price for your product or service is hard. In fact, determining price is one of the toughest things a marketer has to do, in large part because it has such a big impact on the company’s bottom line. One of the critical elements of pricing is understanding what economists call price elasticity. To better understand this concept and how it impacts marketing, … [ Read more ]

Content: Article | Authors: Amy Gallo, Jill Avery | Source: Harvard Business Review | Subject: Pricing

Doesn’t every business want to maximize its profits? Pricing textbooks certainly all assume they do, or at least that they want to achieve a certain profit level under given constraints. But in truth businesses rarely focus on only profitability; most strive to satisfy various stakeholders and meet the goals of balanced scorecards. And even when a company is focused tightly on financial performance, there are … [ Read more ]

Content: Article | Author: Stefan Michel | Source: Harvard Business Review | Subjects: Finance, Management, Pricing

An important part of an optimized website is your pricing page. So how can you best structure it? How can you present the information in the most effective way to help your site visitors decide to start using your product or service? Here are seven rules for designing your pricing page for optimal conversion.

Content: Article | Author: Dimitar Stojanov | Source: MarketingProfs | Subjects: Marketing / Sales, Pricing

Smartphones, tablets, even desktops have forced marketers to move on from age-old pricing models. They have had to dig deeper into buyers’ thought process to understand what persuades buyers. This article will explore some creative ways of pricing products for the digital age, backed by some sound research and practical applications.

Editor’s Note: find part 2 at Content: Article | Author: Rohan Ayyar | Source: MarketingProfs | Subject: Pricing

Harnessing the flood of data available from customer interactions allows companies to price appropriately—and reap the rewards.

Content: Article | Authors: Dieter Kiewell, Georg Winkler, Walter Baker | Source: McKinsey Quarterly | Subjects: IT / Technology / E-Business, Pricing

Using price analytics could help companies in many industries do a better job of understanding the profitability of specific products and services. One cornerstone is ensuring the transparency of all associated costs. Price analytics also addresses areas such as organizational structure, business processes, customer segments and product characteristics.

Content: Article | Authors: David A. J. Axson, Kurt Rosander | Source: Accenture | Subjects: Finance, Management, Pricing

Diverse offerings make it tougher than ever to associate prices with a product’s or service’s underlying costs. Developing pricing arrangements for specific customers or customer groups also is increasingly difficult. One possible solution is a fully allocated price and cost waterfall.

Content: Article | Authors: Anthony Milani, Hyun Suk Oh, Ray Florio, Tiago L. Salvador | Source: Accenture | Subject: Pricing

If you’re not exactly sure which pricing strategy will work for your business, these 6 steps can help you successfully set your company’s prices.

Content: Article | Author: Dileep Rao | Source: OPEN Forum (American Express) | Subject: Pricing

Conventional management wisdom suggests that price should reflect value. But what is the value that prices should reflect? And just whose perception of value should determine price? As these questions and the answers to them suggest, pricing is no longer only an economic challenge. As this author suggests, pricing today is also a marketing challenge, and in this article he describes how managers should deal … [ Read more ]

Content: Article | Author: Tim J. Smith | Source: Ivey Business Journal | Subject: Pricing

This content is restricted to site members. Please log in or register

Business executives involved in mergers or acquisitions face a full plate of prickly issues, from early due diligence to negotiating deal terms to organizational integration, including who ends up in the C-suite. However, one thing they typically don’t pay enough attention to is pricing strategy.

Content: Article | Authors: Jessica Fleming Kosmowski, Patricio Simpson | Source: Business Finance Magazine | Subjects: Mergers & Acquisitions, Pricing

The first task is to map benefits versus price—as the customer sees them. Bear in mind that equal value doesn’t mean equal market share. The key decision: do you stay on the line of value equivalence, or get off?

Content: Article | Authors: Michael V. Marn, Ralf Leszinski | Source: McKinsey Quarterly | Subject: Pricing

This content is restricted to site members. Please log in or register

Prices tend to be seen as markers for individual transactions. In fact, the total realized price for many products and services takes into account the full set of related transactions that occur before, during and after the sale. It represents a window of opportunity that opens earlier, and stays open longer, than companies often realize.

Content: Article | Authors: John Hanson, Paul F. Nunes | Source: Outlook Journal (Accenture) | Subject: Pricing

When most managers think about pricing, they harken back to their days of Economics 101: a rote downward sloping demand curve and an asterisked point labeled “perfect price.” At this optimal price, elasticity is such that it does not make sense to raise price (because the extra per unit profit is overshadowed by lost sales) nor discount (because increased sales don’t compensate for lower profit … [ Read more ]

Content: Article | Author: Rafi Mohammed | Source: Harvard Business Review | Subject: Pricing

Because management is not an exact science, several approaches that appear obvious turn out to have little value. In a book published this year—and particularly in a chapter devoted to pricing and competition—Kellogg School of Management professors Rakesh Vohra and Lakshman Krishnamurthi outline why many preconceived ideas can be wrong.

Content: Article | Source: Kellogg Insight | Subject: Pricing

How do you find out how much your customers will pay? It’s simple: Ask them. Of course, you can’t ask customers directly how much they are willing to pay — they’ll likely shade the truth (by giving a lower price) to their benefit. That said, there are a variety of ways to better understand how your customers think about your price. In my work, I … [ Read more ]

Content: Article | Author: Rafi Mohammed | Source: Harvard Business Review | Subject: Pricing

Pricing is critical, and short-changing your pricing strategy is the fastest way to leave cash on the table—money that will be lost forever and never recovered.

So after that initial spark of innovation and the completion of the design, development and marketing phases that follow, don’t screw up the process by treating price as an afterthought. Have you spent as much time and resources on price … [ Read more ]

Content: Article | Author: Patrick Lefler | Source: ChangeThis | Subject: Pricing