Better bundling
Bundling is all around us. The cable companies do it, Walmart does it, Prudential Insurance does it, even your local hardware store does it. So why do they bundle? Why not sell the parts of the bundle separately? There can be many reasons, but more often than not, the main motivation is to generate incremental […]
The price of sharing – Is Netflix risking the wrath of subscribers a second time?
For a monthly fee of just $7.99 Netflix customers have access to a wide variety of TV shows, movies and other original content. More often than not, users share accounts between family members and friends due to the company’s relaxed policies. Netflix doesn’t restrict the number of devices or users per account, but does limit […]
Pricing Matching – A Race to the Bottom
Bloomberg Business Week recently featured an article on the business of price matching by major retailers . The gist of the discussion was how difficult price matching can be in practice, if not in concept. Let’s explore in depth the upside and downside of price matching. Price matching can be used as defensive approach to […]
Frozen Yogurt – Low Fat, High Price?
Summer has officially arrived and frozen yogurt is on our minds – pricing of frozen yogurt, that is. We have noticed a flurry of new frozen yogurt store openings recently and thought it would be a timely topic to investigate. Besides being low in calories, the main attraction seems to be the do-it-yourself nature of […]
Parrying Through a Tough Negotiation
In this blog, we focus on the importance of price negotiation. Final pricing is often a result of negotiation that follows the arduous work of developing your pricing strategies to optimize both price structure and price level. If you’re a pricing or a sales professional, being a good negotiator can yield even greater returns from […]