Archives posted in: Pricing
CEO’s are responsible for organizing productive operations, and ultimately generating revenue. When it comes to their pricing responsibility, CEO’s manage pricing decisions by defining the culture, structure, and routines necessary for producing sound decisions that align with their strategy.
MoreDismal earnings have been reported at Macy’s, JC Penney, Kohl’s, Barnes & Noble, Sears, and many other retailers—countered by increase sales at Amazon.com. Even Walmart is investing in online capabilities, begging the question will all physical retail fail? No.
MoreSo what do executives get wrong about pricing? They treat it as a noun not as a verb. Treating price as a verb drives executives to define the culture, organizational structure, and process for making pricing decisions. Leading firms do this. Failing firms don’t. Executives, you have a choice.
More“Discounting becomes a drug that is hard to get off, and creates this basis for consumer to not trust regular prices,” Uri Minkoff.
MoreI suspect Mr. Woodman believed that the GoPro could become the hot item for the holiday season. But $400 seemed a bit high for the average consumer. Why not drop it? If the price was lower, then more people may buy it, and GoPro may become a consumer product giant. Perhaps it could join the leagues of Apple, Cannon, and Sony?
MoreDedication to understanding its customers makes a company more knowledgeable about the competitive landscape and better equipped to anticipate changing conditions. The entire company feels less insular and more connected to its existential purpose: serving customer needs profitably.
MoreFor Amazon Web Services (AWS), on the other hand, while your final price depends on your usage, the pricing is transparent down to the hour. While you may not know the amount due ahead of time, you know exactly how they will arrive at that number.
MoreNotice the deal specificity. Target prices are deal dependent. That means it can vary between customers and between selling opportunities with the same customer. Target prices may be customer dependent, product mix dependent, quantity dependent, promotional timing dependent, competitive situation dependent, or even cost dependent.
MorePricing Done Right provides a roadmap for improving pricing practices within any market-oriented firm. It provides a framework for managing pricing decisions in any organization. It clarifies the best practices for defining the organizational culture, architectural hierarchy, and routines for getting pricing done right.
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