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2017 Articles by Date

Checking Assumptions

December 2017 Communication, Pricing

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.

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Strategic Movements December 2017

December 2017 Corporate, Product

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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Pricing is a Product Management’s Responsibility Too

November 2017 Pricing, Selling

Product managers undoubtedly can be held accountable for the profitability of their portfolio. It is reasonably possible to make portfolio profitability a key performance indicator of a product manager. And it reasonable to make this part of their compensation package, thus holding them not only accountable but impacting their own economic condition based on the quality of the decisions they make.

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