121 Posts Found

Three actions are key as companies consider dynamic pricing models.

Content: Article | Author: Arnab Sinha | Source: Boston Consulting Group (BCG) | Subjects: Marketing / Sales, Pricing

Inflation-fatigued shoppers are witnessing prices fluctuate across categories with unprecedented scale and frequency — a trend often seen as yet another cunning commercial scheme. Is the extra profit companies see from dynamic pricing worth the risk of alienating customers? If done well, companies shouldn’t be making that trade-off — dynamic pricing.

Content: Article | Authors: Marco Bertini, Oded Koenigsberg | Source: Harvard Business Review | Subjects: Marketing / Sales, Pricing

BCG has developed a unified pricing theory, manifested in a tool they call the Strategic Pricing Hexagon, by bringing all the disparate pricing ideas, and the drivers and forces behind them, into one master structure. This article shows how the Strategic Pricing Hexagon allows leaders to look beyond the numbers and develop a pricing strategy that can change the entire trajectory of their business and … [ Read more ]

Content: Article | Authors: Arnab Sinha, Jean-Manuel Izaret | Source: Boston Consulting Group (BCG) | Subjects: Marketing / Sales, Pricing

Inflation is painful, for firms, customers, employees, and society. But careful study of periods of “hyperinflation” point to ways that firms can adapt. In particular, companies need to think about how to change prices regularly and cheaply — because constant price changes can ultimately be very, very expensive. And they should consider how to communicate those price changes to customers. Providing clarity and predictability can … [ Read more ]

Content: Article | Authors: Daniel Levy, Mark E. Bergen, Rose Semenov, Thomas Bergen | Source: Harvard Business Review | Subjects: Management, Marketing / Sales, Pricing

Companies seeking loyal consumers shouldn’t take advantage of their tendency to stick with unwanted subscriptions.

Content: Article | Authors: Avner Strulov-Shlain, Deborah Lynn Blumberg, Klaus Miller, Navdeep Sahni | Source: Stanford University | Subjects: Marketing / Sales, Pricing

In a digital marketplace, mixing “freemiums” and promotions can actually be a money maker.

Content: Article | Authors: Harikesh Nair, Jonathan Levav, Julian Runge, Sachin Waikar | Source: Stanford University | Subjects: Marketing / Sales, Pricing

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Price resets can create significant wins. But if minor changes in price cause massive fluctuations in output-KPIs, there’s a deeper problem: Your product is not working. 

The solution is to build a more diversified, customized product and pricing model — moving away from one-size-fits-all and towards granularity. By doing this, you won’t only improve your unit economics, but your product itself will become … [ Read more ]

Content: Article | Author: Dee Sahni | Source: First Round Review | Subjects: Marketing / Sales, Pricing

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Business-to-business organizations have long grappled with setting the right prices-and yet, the payoff can be huge. Optimizing pricing can boost profits by 15 percent or more.

Content: Article | Authors: Abhishek Malhotra, Deepak Maloo, Shipra Biswas Bhattacharyya | Source: Kearney | Subjects: Marketing / Sales, Pricing

Why do we set prices? Setting aside the important reasons of generating revenue and maintaining solvency for a business, there are many other reasons to set price. Price reinforces brand because price telegraphs whether a product is a premium product or a value product. Price differentiates products in the market and can be used as a go-to-market strategy. Underprice the competition to gain share. There … [ Read more ]

Content: Article | Author: Tomasz Tunguz | Subjects: Marketing / Sales, Pricing

The root of all innovation evil is the failure to put the customer’s willingness to pay [WTP] for a new product at the very core of product design. Most companies postpone pricing decisions until after the product is developed. They embark on a long, costly journey of hoping they’ll make money rather than knowing they will. You can ensure your product not only stays alive, … [ Read more ]

Content: Quotation | Author: Madhavan Ramanujam | Source: First Round Review | Subjects: Customer Related, Innovation, Marketing / Sales, Pricing

If pricing is adjusted on a regular basis, it trains your customers to understand that the value is going to be changing as the product is improving. The worst thing you can do is add so much value over the course of three to five years — even 12 months — and then all of a sudden want a big bump from your customers who … [ Read more ]

Content: Quotation | Author: Patrick Campbell | Source: First Round Review | Subject: Pricing

Early on, many startups don’t want to show prices — and that’s okay. Most don’t really know what they should charge, so they prefer to get intel by asking inbound customers some pricing questions. However, when you reach a point where you want a touchless sale, then you need to show your pricing. If it’s not a clear number, such as in Wistia’s case, give … [ Read more ]

Content: Quotation | Author: Patrick Campbell | Source: First Round Review | Subjects: Entrepreneurship, Marketing / Sales, Pricing

Madhavan Ramanujam is to monetization strategy what Bob Marley is to reggae music. He’s managed over 125 projects for companies ranging from hot startups to the Fortune 500. Drawing from his talk at First Round’s CEO Summit, Madhavan Ramanujam explains why pricing is so paramount from the get-go and the four ways companies often trip up when trying to monetize. He also shares the three … [ Read more ]

Content: Article | Author: Madhavan Ramanujam | Source: First Round Review | Subject: Pricing

Price Intelligently Co-founder and CEO Patrick Campbell has seen startups and multinationals alike labor to perfect products only to casually raise their finger to the wind when it comes to determining pricing. In this exclusive interview, Campbell deconstructs and walks through the elements of a pricing strategy to enable startups to more effectively acquire customers. The foundational work behind pricing is to create, test and … [ Read more ]

Content: Article | Author: Patrick Campbell | Source: First Round Review | Subject: Pricing

Figuring out the right pricing for your startup is a challenging, yet crucial, part of building a successful company. The way you price your product can make or break your startup. So, it’s important to understand the pricing landscape of your market and how your company fits into it to get your startup’s pricing right.

Dreamit recently hosted an educational panel on startup pricing for the … [ Read more ]

Content: Article | Source: Medium | Subjects: Entrepreneurship, Pricing

How can you optimize the price of a product or service? Julián Villanueva, José Antonio Segarra and Iciar Ferrer outline the variables to keep in mind and explain how to tailor your pricing policy. For starters, remember that most buying decisions are far from rational, as they are influenced by certain psychological factors.

Content: Article | Authors: Iciar Ferrer, José Antonio Segarra, Julián Villanueva | Source: IESE Insight | Subject: Pricing

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