Tag: Strategic Pricing Solutions

How to Segment When All Customers Look Alike | Strategic Pricing Solutions

How to Segment When All Customers Look Alike | Strategic Pricing Solutions

Customer segmentation is a simple concept – identify groups of customers who tend to have similar levels of price sensitivity and set distinct prices for each group.  Unfortunately, many companies either think all their customers are the same, or they don’t have enough information to create segments.  In particular, we often see this in retail […]

Is Your Goal Volume or Profit? | Strategic Pricing Solutions

Is Your Goal Volume or Profit? | Strategic Pricing Solutions

If a company is creating a new market or new market niche, it may be important to build critical mass early in the process.  Doing so might enable them to spread their infrastructure costs over a wider base of business.  In that case, it could make sense to use penetration pricing which offers low prices […]

New Year’s Resolutions for Pricing 2018 | Strategic Pricing Solutions

New Year’s Resolutions for Pricing 2018 | Strategic Pricing Solutions

I resolve to: Set prices according to the value we bring to customers, not according to my costs. Use the rich data I have in my transactions and CRM interactions to better understand my customers’ needs, how they react to prices and offers, how their prices compare to similar customers and situations, the reasons we […]

A Post-Christmas Carol | Strategic Pricing Solutions

A Post-Christmas Carol | Strategic Pricing Solutions

Customers are smart, they’re cagey and quick; They know their vendors can be like St. Nick. When quotas are missed in the first period or two, Gifts and discounts for customers old and new. “Hey Dasher, hey Dancer, hey Prancer and Vixen, It’s time for your sales team to be a blitzin’. Come to my […]

Five Below (FIVE) Defies Industry Trend, Stock Up 65% YTD | Nasdaq.com

Five Below (FIVE) Defies Industry Trend, Stock Up 65% YTD | Nasdaq.com

Product Range & Pricing a Major Driver Five Below’s primary focus on teens and pre-teens, helps the company enhance customer base by attracting shoppers. Further, the company is known for its impressive range of merchandise, as the company remains committed toward making innovations and refreshing its product range per the evolving consumer trends. These factors […]

Lack Of  By TV Sellers Carries A Big Cost: Furious Corp.’s Ashley J. Swartz | Beet.TV

Lack Of By TV Sellers Carries A Big Cost: Furious Corp.’s Ashley J. Swartz | Beet.TV

So Swartz and her team took a step back and regrouped. In 2016, Furious on-boarded more than 15 media companies, mostly from North America, including the largest ones, onto the platform. It chose seven of the 15 to use in a revenue linkage analysis involving at least a year of transactional data—campaign-level and in some […]

The Problem With Fake Discounts | Strategic Pricing Solutions

The Problem With Fake Discounts | Strategic Pricing Solutions

If you are a seller employing the large discount strategy, you should analyze your transactions to see what proportion of your sales are transacted at the full list price.  If only 10% to 15% of your sales are at list price, it is pretty clear your customers recognize the fake discounts.  Unfortunately, it is not […]

How to Value-Price Durability | Strategic Pricing Solutions

How to Value-Price Durability | Strategic Pricing Solutions

Recently I had a conversation with a friend (let’s call her Helen) who wanted to buy a new iPhone, however she was frustrated that the iPhone 8 offers little in enhancements from her current iPhone 6.  She was contemplating ordering an iPhone X.  When I asked why Helen needed a new phone at all, she […]

Execute Your Plans with Courage, Not Hubris | Strategic Pricing Solutions

Execute Your Plans with Courage, Not Hubris | Strategic Pricing Solutions

If the team has identified certain products as being superior to competing alternatives, and has quantified how that superiority creates value for customers versus the alternatives, those products should have higher prices than the competitors’.  If that means raising some prices more than expected, so be it.  If the team is afraid to execute the […]

Segmentation Is a Critical Part of Channel Management | Strategic Pricing Solutions

Segmentation Is a Critical Part of Channel Management | Strategic Pricing Solutions

The challenge that Under Armour is facing is the exact reason most luxury brands limit their channels to high-end stores where shoppers are not price-sensitive.  If the luxury brands want to target more price-sensitive customers, they develop new products or brands that do not have the same cachet or premium pricing.  By doing so, they […]