People shop at different market channels. Some buy at neighbourhood stores while others shop at large malls.
Buyer also switch channels based on occasion. Those who shop at large stores for bulk monthly purchases, often depend on neighbourhood store for small filler shopping. B2B buyers also show similar preference. Continue reading Price Channel Alignment
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
It is not uncommon to have a product portfolio that does not have any products in a particular price range and a lot of products in some other price range. Any such gap or clutter in a product portfolio needs evaluation.
Continue reading Portfolio Gap and Clutter Analysis
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
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
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
With the prevalence of Software-as-a-Service, subscription pricing has become familiar to most of us.
These days Microsoft office is also available as subscription through Office 365. Similarly, we see subscription pricing in cable TV, streaming movie & music services and online magazines. Continue reading Subscription pricing: New frontiers
Last month I went our for lunch with a friend to a new Italian restaurant in the neighbourhood.
The place was done up very nicely. The walls has thoughtful paintings, the furniture looked classy and the staff was friendly. The menu design seemed artistic. To top it all, the food was also good and the prices were well within the rage of what you would expect from such an establishment. Continue reading Are customers are unwilling to try your product ? Use these pricing tactics
Many software companies offer software-as-a-service. In order to attract the customers these companies use freemium or free trial strategy.
What is the difference? In freemium model you offer a limited version of free software for unlimited time and hope that the the customer will see value in the extended features that the paid version has to offer and accordingly upgrade. In the free trial model, you offer a full version of the product for limited amount of time. Here the belief is that in the limited period the customer will see enough value in the product and buy it. Continue reading Freemium of free trial. Which is better for you?
In the late 90s, there was a curious phenomenon. Many well off people owned mobile phones, but they used it sparingly.
The main reason for this behaviour was that incoming calls were charged. Unless the call came from some known person, it simply was not picked up. It took a government notification to do away with the charging of the incoming calls. This event, in my view, singularly caused the telecom revolution in India that is for all of us to see. Continue reading Five secrets to arrive at right price metric