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
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