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Product

60 articles found in this category.

Price Isn’t Cost

February 2017 Product, Selling

Once the investment is made, its cost no longer factors into the marginal cost of producing a product. Fixed costs are an important part of a go-or-no-go decision for a company at the onset of production, but should not factor into the price of a product going forward. Fixed costs are sunk costs.

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Pricing Cannabis Gummies

January 2017 Product, Selling

Different consumers care about different things. Some will care that their THC-laced gummies have fewer other chemicals, some won’t. But the ones that do are probably willing to pay a premium for those products. We certainly see that in the organics aisle at a grocery store. Why would cannabis products be any different?

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Will PlayStation VR Succeed?

November 2016 Product, Selling

Not that I can or am stating that everything Sony did was perfect. And I am definitely not stating that everyone will find Sony’s design tradeoffs to result in a good offering. But they did define their target market and product design requirements in such a manner broadly appearing to be compatible with a highly successful product, launch.

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You Get What You Pay For

September 2016 Corporate, Product

One of the strongest arguments against advertising as the primary method of monetization is that you pay with your time and attention, which is a resource both finite and irreplaceable. Services like Spotify aggregate hundreds of labels on one easily accessible interface and payment system.

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How Can the Music Industry Bridge the Gap Between Physical and Digital Experiences?

August 2016 Marketing, Product

We’re visual creatures, too. Whereas programs like iTunes and Spotify will display album art, it’s not the same experience as standing before a rack of albums. Similarly with books, despite all of the advantages of e-readers, they have not captured the experience of examining a wall of books. Digital is great, but, unsurprisingly, there are features of the physical world that still have a certain primacy for, well, physical beings:

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B2B and B2C Ecommerce Trends Witnessed at Internet Retailer 2016

August 2016 Corporate, Product

Adrienne Hartman, Director of Ecommerce & Customer Insights at J.J. Keller & Associates talked about how B2B Ecommerce cannot be solved only by software alone. (I agree with her) She also talked about using Google Manufacturing Center. She encourages you to ask, "How well can buyers use your site?" It is clear that her words come from an employee of an organization with a strong culture.

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Will Culling Low Margin Items Actually Destroy Profits? An Exploration into Economies of Scope

July 2016 Pricing, Product

Firms often sell low margin items because customers seek the low margin items and, when buying, buy higher margin items as well. These low margin items can make sense through their enablement of the firm to profit from economies of scope. Killing low margin items can make sense in some cases, but other cases doing so will kill the firm.

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Tesla’s Software Upsell

July 2016 Product, Selling

What Tesla has changed for the automotive industry is now that upselling process can continue long after the purchase of the vehicle. If you buy a S60 then get a better-paying job with a longer commute, you can choose to upgrade with essentially no additional cost to serve for Tesla. And spacing out the payments for the vehicle and later the capacity may make the original vehicle purchase more palatable for the consumer.

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