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When Price Doesn’t Matter

March 2018 Pricing

If you find yourself in this situation, reducing price can help to clear existing inventory but it will not solve the fundamental problem of lacking a product that people want. Better to preserve what profits you can and invest them into developing a product that addresses a customer need.

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Pricing Dashboard Design

June 2019 Pricing

Executive dashboards are valuable coordination tools. They help pricing teams communicate facts and identify areas deserving executive attention. This is demonstrably clear. Yet, what facts specifically should be on a pricing dashboard? What are the issues that pricing should bring to the attention of their CEOs? To address this question, I asked ten different pricing […]

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Can Money Buy Your Morals?

July 2019 Pricing

Classical economics assumes that our rational self-interest will guide our decision making. The first part of that assumption, the “rational” part, was proven to be a premise needing clarification by the work of Kahneman and Tversky in their 1979 paper on Prospect Theory. This seminal work led to an entirely new branch of economics, best […]

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When Shortage Is Strategic

February 2018 Marketing, Product

Shortages can be signals of excitement, quality, even virtue. “Sold out” is a powerful story for the right kind of product. Musk’s goal isn’t optimizing his earnings from flamethrowers. His goal is building excitement and investment around his companies. Selling out a flamethrower, and even a hat, does that in a big way.

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The Pitfalls of Dynamic Pricing

June 2018 Pricing, Selling

In my upcoming book, preliminarily titled The New Invisible Hand, I’ll explore the most important technological trends affecting pricing and commercial strategy. One chapter will focus specifically on this issue: unpacking the promise and perils of dynamic pricing.

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Machine Learning for the Masses: Regression Analysis

June 2019 Pricing

Machine learning has become a very popular topic in recent years. However, I fear that most people hear “machine learning” and assume that it must be a very difficult topic to understand. After all, machine learning is a subfield of artificial intelligence, so machine learning must be complex. On the contrary, some machine learning techniques […]

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What Are You Doing? Log-Linear Regression

July 2019 Pricing

For this month’s article, I offer an overview of a log-linear regression that I conducted for a client recently. While I find the mathematics and statistics that I used for this project fascinating in and of themselves, I do not want to get bogged down in the actual equations or any distracting minutiae. What I […]

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The Relationship of Price and Demand

August 2019 Pricing

For this article, I am going to discuss how we model the relationship between price and demand. Most people have an intuitive understanding that when the price of a good increases, the demand will decrease. Conversely, when the price of a good decreases, the demand will increase. The change in demand according to a change […]

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The New Invisible Hand

July 2019 Pricing

My book The New Invisible Hand will be released at the end of July. This book is for you if you’ve ever struggled to understand how your company should react to different competitive threats enabled by changing technology. You’ll learn how five technological revolutions are upturning entire industries and determining new winners and losers in […]

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The Importance of Speaking Other Business Languages

June 2019 Communication, Corporate

I was recently in Portland, Oregon for the first time, attending a business conference. The Digital Summit series brings together all manner of marketing practitioners, from strategists to email marketing specialists to search optimization experts. While only tangentially related to pricing, such an event is useful because it provides exposure to new ideas and other […]

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Being Threatened by Bill Gates

August 2019 Corporate

The following is an excerpt from my new Amazon bestseller, The New Invisible Hand: Five Revolutions in the Digital Economy. This story from the earlier days of digital disruption helps to set the scene: technological forces of change transform entire industries, and it is incumbent upon executives to take advantage of their new opportunities. ** […]

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Strategic Movements June 2018

June 2018 Corporate, Selling

With new competitors Norwegian Air Shuttle and JetBlue Airways entering the market, and the addition of smaller 200-seat planes, capacity on transatlantic flights has grown by more than 20% since 2013. That is comparable to a 4% capacity increase year for the past five years. Did demand increase at this rate as well?  Expect pricing pressure to increase as new entrants attempt to muscle their way in.

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Strategic Movements June 2019

June 2019 Pricing, Selling

Honey Demand Up, Supply Constant.  Prices? Demand for honey has increased as people perceive it as a healthy alternative to sucrose and fructose from sugar cane, sugar beets, and corn.  Global supplies of honey have been relatively stable according to Apimondia, an international federation of beekeepers.  (Beehive colony collapse challenges ae widespread in many countries, […]

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Strategic Movements July 2019

July 2019 Pricing

Household Insecticide Pricing Raid, a household insecticide by S.C. Johnson & Son Inc. with roughly 50% U.S. market share, sells for $4.27 per 20 oz can canister ($0.21 per oz).  Procter & Gamble Co. has recently launched Zevo, a competing household insecticide, for $6.97 per 10 oz can canister ($0.70 per oz). Does Zevo warrant […]

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Strategic Movements August 2019

August 2019 Pricing

Online Grocer Pricing Thrive Market requires a $60 annual fee and offers free shipping for orders over $49. Public Goods requires a $59 annual fee and offers free shipping for orders over $45. Brandless requires a NO annual fee and offers free shipping for orders over $48. All three of these companies focus on house […]

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Top 6

“The billionaire investor and philanthropist George Soros has launched a blistering and multipronged attack on Facebook and Google, arguing the tech giants’ size and ‘monopolistic’ behavior had made them a ‘menace’ to society, damaged democracy, and encouraged ‘addiction’ akin to gambling companies,” Business Insider

  1. Harsh accusations on revolutionary technological methods?
  2. Or insight into cancerous communication dependencies?
  3. Is Soros shining a light on an otherwise ignored point of digital contention?
  4. How would we wean off these tools?
  5. What’s their alternative now that we’re hooked?
  6. Is there no going back?
From the Archives

Value on the Table vs. Capturable Value

Value on the Table vs. Capturable Value

Value on the Table vs. Capturable Value

Pricing Innovation

When Price Doesn’t Matter

» July 2018

The Niti and Nyaya in Pricing

Pricing Habits of Successful Entrepreneurs

» May 2019

Market v Executives: I know an old company that let the market the price decide…

» June 2019

Pricing Dashboard Design

» July 2019

Can Money Buy Your Morals?

» December 2017

Checking Assumptions

» December 2017

Checking Assumptions

» December 2017

Checking Assumptions

» December 2017

A Bad Metric for Good Pricing

» December 2017

A Bad Metric for Good Pricing

» July 2018

Whither Middlemen?

» January 2019

Evolving Product Strategy in a Growing Industry

» May 2019

The Elephants in the Room

» June 2019

Machine Learning for the Masses: Regression Analysis

» July 2019

The New Invisible Hand

» December 2017

A Bad Metric for Good Pricing

» December 2017

A Bad Metric for Good Pricing

» December 2017

A Bad Metric for Good Pricing

» November 2017

If My Customers are Unique, Why Isn’t their Pricing?

Will Nordstrom Survive the Amazon/Walmart Duopoly Onslaught?

» July 2018

Decision to Grow Instead of Harvest May Be the Key to Microsoft’s Survival

» November 2018

The Netflix Success Story: Reaping Rewards from Disruptive Innovation

» April 2019

Design Thinking and Corporate Strategy

» June 2019

What are “Ironclad” Brands and How to Maintain Them

» June 2019

Pricing Dashboard Design

Thinking About a Career in Pricing?

Thinking About a Career in Pricing?

Thinking About a Career in Pricing?

When Shortage Is Strategic

» February 2018

When Shortage Is Strategic

» July 2018

Strategic Movements July 2018

Treating Channel Partners Strategically

» March 2019

Strategies for Retail Survival in the Amazon Era

» June 2019

The Importance of Speaking Other Business Languages

» June 2019

Machine Learning for the Masses: Regression Analysis

» October 2017

Pricing and Sales: How to Begin Building a Better Relationship

» October 2017

Pricing and Sales: How to Begin Building a Better Relationship

» October 2017

Pricing and Sales: How to Begin Building a Better Relationship

» August 2017

The Apple iPhone Success Story: Planned Obsolescence, Disruptive Innovation or Something Else?

» December 2017

Future of Internet at Stake if FCC Abandons Net Neutrality

» August 2012

Trust and Business Relationships

» May 2019

Strategic Movements May 2019

» May 2019

Internet Evolves Into Ultimate Corporate Survey Research Vehicle

» June 2019

What are “Ironclad” Brands and How to Maintain Them

» November 2017

If My Customers are Unique, Why Isn’t their Pricing?

» November 2017

If My Customers are Unique, Why Isn’t their Pricing?

» November 2017

If My Customers are Unique, Why Isn’t their Pricing?

» November 2017

“Disruptive Innovation” Key to America’s Future

Dollar General Looks Good Today. Will Tomorrow Be Different?

» July 2018

Whither Middlemen?

» May 2019

Developing Products and Pricing Strategy In Tandem

» May 2019

Developing Products and Pricing Strategy In Tandem

» May 2019

The Elephants in the Room

Harvard Uncovers a 15th Century Business Success Manual

Harvard Uncovers a 15th Century Business Success Manual

Harvard Uncovers a 15th Century Business Success Manual

Changing of the Pricing Guards

» November 2017

If My Customers are Unique, Why Isn’t their Pricing?

Strategies for Retail Survival in the Amazon Era

» April 2019

Retroactive Rebates: Decision Inexactitudes

» April 2019

Retroactive Rebates: Decision Inexactitudes

» May 2019

Developing Products and Pricing Strategy In Tandem

» October 2017

Shaping Customer Behavior through Commercial Policy

» October 2017

Shaping Customer Behavior through Commercial Policy

» October 2017

Shaping Customer Behavior through Commercial Policy

» December 2017

Checking Assumptions

Tariffs Defy Traditional Marketing and Pricing Thinking

» September 2018

Amazon the Kingmaker

» April 2019

Channel Strategy in CPG

» April 2019

Channel Strategy in CPG

» March 2019

Strategies for Retail Survival in the Amazon Era

» November 2017

“Disruptive Innovation” Key to America’s Future

» November 2017

“Disruptive Innovation” Key to America’s Future

» November 2017

Pricing is a Product Management’s Responsibility Too

» December 2017

Checking Assumptions

» December 2018

Is General Electric the Next Icon to Fall?

» February 2019

Do CPG Companies Really Have Control over Pricing?

Strategic Movements January 2018

Strategic Movements January 2018

Marketing Industry Survey Reports—Clients and Agencies May Not Be On the Same Page

» July 2017

Valuing Benefits: Weighted Average or Economic Impact?

Strategic Movements March 2019

» January 2019

Evolving Product Strategy in a Growing Industry

» October 2017

Is Retailing Becoming an Oligopoly?

» October 2017

Is Retailing Becoming an Oligopoly?

» October 2016

Advertising’s Funny Balancing Act

Strategic Movements

» October 2018

A Segment of One: Fixed vs. Variable Pricing

Strategic Movements February 2018

» November 2017

Innovating the World of Management Consulting

» November 2017

Innovating the World of Management Consulting