Lately, we’ve had a lot of conversations with businesses that are ramping up “strategic pricing“. They’ve adopted more systematic approaches to pricing and have taken responsibility for setting prices away from salespeople. This transitions price away from the team worried about closing a sale to specialized pricing people who are worried about generating profits that meet company goals. That’s terrific…. Read More
For over a decade, athletic titan Nike declined to partner with Amazon, America’s largest online retailer. Nike held out, wanting to carefully control brand messaging while enjoying higher margins through its distribution network of brick and mortar stores. On June 29th, Nike conceded by confirming a deal with Amazon to sell and distribute apparel and footwear. Ironically, consumers may not notice… Read More
With astonishing speed, Uber has disrupted the taxicab industry. Others have looked at their success and dreamed of emulation. The strategy often touted for Uber’s success is surge pricing; charging higher prices at times of high demand. Surge pricing is an example of dynamic pricing, where the price fluctuates depending on one or more factors, like the demand for ride service…. Read More
In a recent HBR article, “Linear Thinking in a Non-Linear World,” the authors explain how our minds are naturally biased to assume every relationship between two variables is linear. We are trained to think that the impact on Y with a change in x will be in a fixed/constant proportion. Often, this is not the case and can lead… Read More
Mayuresh Saravanakumar lays out his framework in the video below for creating a simple approach to pricing analytics success: Identify, attack, and monitor. See also Mayuresh’s other blogs on pricing analytics including examples analyses and dashboards here.
In an article in the Wall Street Journal last week, columnist Andrea Fuller detailed her journey through the frustrations of trying to find out the fees (read: price) she pays her financial advisor. Due to conflicts of interest, the WSJ does not allow reporters to invest in individual stocks, so she has a blend of mutual funds and Exchange Traded… Read More