The Death of Steve Jobs
Will Tim Cook lead Apple into the same sales volume trap that almost killed Nokia and Motorola? I frequently blog about how Apple is a true price champion. They have after all built a company based on quality products sold at high prices. I admire how they simply say “no” to potential customers who buy on low price alone. It is that bold decision that has awarded them superior profits....
Read MoreIs Netflix’s Loss a Good Move?
Today Netflix announced that their new pricing strategy (announced in July) will generate the company's second-only quarter-on-quarter loss of subscribers. With sharp increases in the price for physical delivery of DVD and a modest reduction in the streaming-only option, more than a million subscribers are leaving the company. Bad news some say.
Read MoreRising Prices Yield Customer Backlash
While the slow economic recovery certainly affects the profitability of producers of many goods and services, a reluctance to “optimize” prices is a trend that could have far reaching negative consequences for companies in most sectors of commerce.
Read MoreChief Executive
While the slow economic recovery certainly affects the profitability of producers of many goods and services, a reluctance to “optimize” prices is a trend that could have far reaching negative consequences for companies in most sectors of commerce.
Read MoreWhat is a pricing strategy?
Personal reflections by Per Sjofors, Founder/CEO Every company has a pricing strategy. It may be simple like adding a fixed margin to the cost. It may be pricing based on a competitor’s price list. Or, it may be something more elaborate. Simple pricing strategies have advantages. They are easy to understand, they are easy to implement and it does not take a lot of company resources to...
Read MorePricing Strategy
While touring diverse manufacturer Parker’s 225 facilities in 2001, CEO Donald Washkewicz had an epiphany: Parker had to stop their simplistic pricing strategy and optimize prices by what a customer is willing to pay rather than what a product costs to make. The results? Between 2001 and 2006 that revenues increased from $6.15b to $9b, while profits rose from $130m to $673m. But price...
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