151 articles found in this category.

Are Drug Companies Ripping Us Off?

March 2016 Corporate, Pricing 2 Comments

Pharmaceutical formularies, like other medical solutions, are best priced according to the value they deliver relative to the alternative treatment for the target disease. If the new solution provides more value, it should have a proportionately higher price. If it provides less value, it should have a proportionately lower price. This is the concept behind value-based price: price to reflect the prices of alternatives adjusted for their differential value for the target customer.


Incentives Aren’t Everything

February 2016 Corporate, Selling

Therefore, it is important to design a sales incentive structure that puts heavy emphasis on company profit, if that is indeed what your company seeks. Your company probably does. Shifting a company from a revenue or volume sales mindset to a profit mindset can take a good deal of time and effort, but it is an important shift, and one that shows real results.


New Washing Machine Marketplace Innovations and Warranties Driving Value Proposition Differentiation

February 2016 Corporate, Product

Recent purchases have lasted less time than that in most cases. I wondered aloud whether using tools like Six Sigma for efficiency over and over have reached an inflection point where they destroy quality. Once you have perfected a product and focus on taking out costs, there is an opportunity cost. That opportunity cost usually results in a loss of quality.


Groupon’s Third Act

December 2015 Communication, Corporate

Both Williams and Mason are frank about past mistakes. They grew too quickly. They didn’t respond appropriately to criticism. Accounting was a mess. The business model required too much labor in place of operational efficiency and scalable systems. But both are optimistic about the core problem that the company is trying to solve: e-commerce for small and local businesses.


Customer Centric Pricing

November 2015 Corporate, Pricing

Without a strong understanding of these customers, as well as the effort to continuously reevaluate this understanding, companies will see their share slip away to better positioned competition. Pricing requires just as much strategy as product; the right product at the wrong price is no longer the right product.