OnDemand WTP Pricing Research

A Tale of Two Pricing Strategies | SmallBizClub

Imagine two companies. One touts the results the customer can expect and charges premium prices, the other touts its low prices. Which one wins?

The two companies are Verizon and Sprint. Verizon’s premium prices allowed it to build one of the broadest, most reliable networks in telecommunications history. In addition to its customer-centric network, Verizon continues to show solid growth in revenues, profits, cash flow and shareholder value.

Contrast that with Sprint which, despite rising revenues, has seen its net loss almost double in the past four years, its debt increased by 20% and its cash from operations dropped by 40%. Other than spikes in stock price associated with potential mergers, Sprint’s shareholders have seen little, if any, growth in the stock’s value.

Read complete article here:

A Tale of Two Pricing Strategies.

Post a Comment

WP-SpamFree by Pole Position Marketing