Top 6 – December 2012

Somewhere between blunt and precise lies communication. Go too far in either direction and you lose them. When sales people manage information flows, they can pry open an opportunity. When a town goes wireless, there is business to be had in recycling wire. When H-P management claimed it was “duped” out of billions, lawyers expected…

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Lufthansa Systems Goes to Market with iPad In-flight Entertainment Systems: EVM Case Study

Thales SA and Panasonic Corp. have recently begun marketing Wi-Fi-enabled iPad in-flight entertainment systems alongside traditional wired and seatback entertainment systems. Does handing out iPads to passengers and going Wi-Fi make sense for other airlines or is this a frivolous luxury for the elite that commoners will never see? A modeling of the Exchange Value can determine.

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Hawk-Dove Pricing: Avoiding a Price War

The ever-so-dreaded prisoner’s dilemma outcome achieved in most pricing wars can be avoided in some instances by applying games of coexistence. In particular, the Hawk-Dove game offers a unique result that fosters mutual benefit and healthy market competition. The value contributed by the Hawk-Dove model involves understanding the cost of waging a price war, the potential strategy-dependent profit realized, and the managerial security expressed.

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Information Is Currency

“Sellers don’t control their product, quality, marketing, customers, competitors, or pricing. What they do control is, what they know, and how and when to apply what they know.“ Read a controversial approach to sales and price quoting from Spider Lockhart and ask yourself: when should prices be transparent and when should they stay opaque?

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Top 6 – November 2012

“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man.” George Bernard Shaw, Irish dramatist (1856 – 1950) Success is the best revenge. If you don’t try, you know you won’t succeed. Failure may be unpleasant, but…

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Mark Hurd’s 5 Sales-Force Design Principles

As Mark Hurd, co-president of Oracle re-emerges on the public stage, we see him once again focusing on the sales force.  Within Oracle’s sales force, he has changed job descriptions, reporting structures, compensation plans, staff size, and corporate routines in a stated effort to improve revenue and profits.  But what principles guide his sales-force design?  Is he a sales-force master architect or a tinkerer that will destroy Oracle’s revenue?

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Promotional Pricing…click click boom

After engaging in a brief conversation on “promotional pricing” with a business operations executive at a global manufacturer in consumer goods industry, I was inspired to address some misconceptions discussed and provide further insight on how firms in the B2B space implement profit-enhancing promotional pricing tactics.  First of all, promotional pricing should be viewed as a means to price segment according to consumers’ willingness to pay, not as a pure promotional strategy.  Case in point, consider Remington Arm’s Promotion of Nitro-Steel Load.

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Best practice for starting Strategic Pricing

Declining profit margins are forcing companies to find new ways to improve profitability. Most companies have been through the cost cutting and strategic procurement processes and are now looking for the next level to pull. Strategic pricing is starting to become more popular as more senior executive have begun to leverage the power of pricing.

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