Blog

Discount Management

Any evening that you go out for dinner gives you a basic lesson in economics.

As you would recall, the 3rd slice of your favourite pizza at does not taste as good as the 1st slice. The economist have a term for it. It is called declining marginal utility. And people want to pay less for something whose utility is low. Continue reading Discount Management

Price Plan Redesign

Effective pricing plans can be the single most important piece in the over all pricing strategy.

Some of the questions that it answers are:  Is your price metric encouraging or hindering usage? Are the number of options and features optimal or are they overwhelming the buyers? Can a smart product bundling significantly increase volume uptake?

Continue reading Price Plan Redesign

Price Optimisation: A small tweak in price, big gain in revenue

When it comes to price changes, the management is usually divided in two camps. One group believes that a price increase is justified because the product offers superior value. They are usually in minority. The other group, opposes any price increase.  

Continue reading Price Optimisation: A small tweak in price, big gain in revenue

Pricing Audits: Fastest way to find price related opportunities

A pricing manager is full of self doubt.

‘Am I over charging too much or giving too much for free?  The competition is being aggressive with its price. If I lower my prices what will happen to my brand positioning?  Will the customers desert me if I increase my prices?’

Continue reading Pricing Audits: Fastest way to find price related opportunities

Avoid these classic traps while designing a loss leader

Have you heard the term ‘losing penny to earn a dollar’ ? Loss leader strategy follows the same principle.

In a loss leader strategy, you price some products low to increase the foot falls. These foot falls translate into additional sales, which more than compensates for the profit shortfall from the loss leader. So the story goes. Continue reading Avoid these classic traps while designing a loss leader