Tag: Strategic Pricing Solutions

Anchoring should be a mainstay of pricing research | Research Live

Anchoring should be a mainstay of pricing research | Research Live

Understanding the core principles of anchoring can not only shed light on how consumers perceive price, but aid researchers in conducting pricing research, says Shamvir Singh. A core part of behavioural economics is the ‘anchoring principle’. Anchoring occurs when consumers use an initial piece of information to make subsequent judgments. Once an anchor is set, other […]

Pfizer’s Logical Approach to Price Increases | Strategic Pricing Solutions

Pfizer’s Logical Approach to Price Increases | Strategic Pricing Solutions

Last week Pfizer announced increases in the list prices of more than 40 drugs for the second time within the year.  The increases average 9.4%.  Although there could be some political backlash, the pricing strategy is logical.  Pfizer is recognizing their pricing power, they are incorporating buyer psychology into their process, and they are taking […]

Willingness To Pay – A Lesson From Baseball | Strategic Pricing Solutions

Willingness To Pay – A Lesson From Baseball | Strategic Pricing Solutions

I am a lifelong fan of the San Francisco Giants.  I waited a long time before they finally won a World Series in 2010, and then again in 2012 and 2014.  Of course, now that they have won it a few times, I want them to do it more often; and I pay close attention […]

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 […]