Archive for December 2017
A Bad Metric for Good Pricing
In this article, we look at how I have often seen pricing improvements measured and why I have some serious reservations with this common metric. I do this in the hopes of generating responses on how you accurately measured the effectiveness of pricing at your company.
Read MoreChecking Assumptions
Pricing is not only numbers, but strongly psychological and emotional. Certain norms emerge that dictate how products and services are sold in different industries. Customers come to expect those norms, whether or not they are necessarily the most economically efficient.
Read MoreFuture of Internet at Stake if FCC Abandons Net Neutrality
By the time you read this article, the Federal Communications Commission (FCC) will have voted on a FCC proposal to revoke “net neutrality” and stop regulating Internet service providers (ISPs), like landline phone companies such as AT&T and Verizon.
Read MoreStrategic Movements: December 2017
The Federal Aviation Administration is contemplating an $8 increase on domestic round-trip ticketing fees. In response, Delta Air Lines Inc. claims that for every $1 increase in facility charges, passenger demand declines by more than 1%. That would imply a primary demand elasticity of about three. Seems right. So, an $8 facilities charge increase would decrease flight travel by 8%.
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