Entries by Dale Furtwengler

A Tale of Two Pricing Strategies

Imagine two companies. One touts results customers can expect and charges premium prices; the other touts low prices. Which one wins? The two companies are Verizon and Sprint. Verizon’s premium prices allowed it to build one of the broadest, most reliable networks in telecommunications history. In addition to its customer-centric network, Verizon continues to show […]

Revenue Growth is Greater Than Price Increases

Higher prices affirm customers’ beliefs in value and attract even more buyers. This approach works for any business, of any size, in any industry. A November 2, 2011 Barron’s article reports that Kraft Foods’ third quarter net revenues grew 11.5% in part due to a 7% price increase. That means Kraft’s revenues grew a whopping 64% […]

Who does a good job pricing?

Pricing expert Dale Furtwengler offers insights and strategies based on real-world case studies, demonstrating pricing models that have bombed or show consistent benefit. Some days, despite your best intentions, you fumble the ball. Such was the case at the Retail Customer Experience Executive Summit when I was asked, “Who [among retailers] does a good job […]

Are Market Share, Pricing and Profitability ‘Strategies’ Smart?

Companies whose primary goal is to pursue market share, often don’t fair well. Why? Their focus is on their goals, not their customers’ interests. A September 11, 2013 Reuters article, iPhone 5c: Apple picks profit over market share yet again, provides an opportunity to make a distinction between market share, pricing and profit strategies. In […]

ChaChing! Using Value Pricing to Grow Sales and Profits – Part 3

The majority of customers still pay for value when they can see it and quantify it. In part 1 we dismissed the argument value is ‘vague’ by demonstrating there are only three things any buyer buys - image, innovation or time savings. This realization has the added benefit of removing complexity from the value pricing […]

ChaChing! Using Value Pricing to Grow Sales and Profits – Part 2

Even though you may have many customers, you’re only addressing three categories they value: image, innovation and time savings. These categories simplify value pricing. In Part 1, we addressed the concern that value is vague. We did so by recognizing the fact that even though each of us defines value a little differently, there is […]