In various blog posts, I have asked the readers to base their pricing decisions on elasticity. In this post, lets try to understand the term better.
Lets start with a mental exercise. Imagine you increase the price of your product by 1%. What happens next?
Continue reading Price elasticity: A short primer
Periodic recessions have become a fact of life.
During a recession, there is a broad based collapse in demand and an excess inventory. In general, the companies start reducing prices during recession. Since the competitors use the same methods, such a strategy is mostly ineffective. Continue reading How to price during recession ?
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