How Companies Can Make Dynamic Pricing Fairer for Customers
Three actions are key as companies consider dynamic pricing models.
Content: Article | Author: Arnab Sinha | Source: Boston Consulting Group (BCG) | Subjects: Marketing / Sales, Pricing
Dynamic Pricing Doesn’t Have to Alienate Your Customers
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
The Unified Theory of 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
3 Lessons from Hyperinflationary Periods
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
Auto-Renew Snags New Subscribers — But It’s Not a Good Way to Keep Them
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
Why Free-to-Play Apps Can Ignore the Old Rules About Cutting Prices
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
Don’t Let Growth Hurt Your Margins: A 4-Step Pricing Framework to Build Products With Scalable Unit Economics
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
Price Balance: Set, Get, Go
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
Ten Years’ Worth of Learnings About 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
It’s Price Before Product. Period.
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
The Price is Right: Essential Tips for Nailing Your Pricing Strategy
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
A Founder’s Guide to Product 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
What Is the Ideal Price of a Product?
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
The Promise — and Perils — of Dynamic 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
Name Your Price. Really.
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
A Refresher on Price Elasticity
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
8 Reasons Companies Don’t Capture More Value
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
Seven Tips to Optimally Organize Your Pricing Page for Conversions
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
Smart Pricing Strategies for Generating Higher Conversions (Part 1 of 2)
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
Using Big Data to Make Better Pricing Decisions
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