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Killing the Golden Goose

October 2011 Marketing, Pricing 5 Comments

In a marketing blunder that rivals Coca Cola’s (temporary) abandonment of its original formula in favor of the sweeter “New Coke,” Netflix (NFLX), despite its incredible success and customer affection, decided to raise its prices 60 percent. Stock tumbled 19 percent. One million customers instantly abandoned Netflix. Was this incredible greed, stupidity or just plain ignorance?

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In America, we teach our kids how markets work at a very early age. It’s called Halloween.

  1. Pricing vs. Sales – “Can we all get along?” Rodney King, 1 May 1992.
  2. Arrogance is an STD (socially transmitted disorder) – very contagious and deadly.
  3. If you only talk to purchasing agents, you aren’t in sales. You’re a clerk.
  4. “You can’t fix stupid.” Ron White, 2006.
  5. If you want to sell value and capture a good price, then talk to the economic buyer. All else aren’t in a position to make a real tradeoff.
  6. Trick-or-Treat: Free candy if your visit my home office on October 31, limited to the first 100 salespeople.