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 […]
If you feel tempted to drive one of your competitors out of the market using low prices, you’ll quickly discover you’re the loser. In a June 3, 2011 article in Booz & Co.’s strategy + business entitled A Sweet Victory, Reed Holden and Mark Burton highlight Hershey’s victory over Nestle in the Krackel vs. Crunch […]
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% […]
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 […]
Sellers are giving discounts to customers who would have bought anyway - at full price. Unfortunately, this does not hit home until it’s too late. A lesson from Panera Bread Co. In my February 28, 2011 post, Buying Customer Loyalty, I railed against reward programs. One restaurant chain, Panera Bread, has proven my point via […]
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 […]
Given the accessibility of information, is it possible to be strategic in your pricing? Or do the ever-shifting sands of your competitors’ prices trap you? Given the accessibility of pricing information today, is it possible to be strategic in pricing your products and services? Or do the ever-shifting sands of our competitors’ pricing trap us […]
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 […]
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 […]
People value and buy image, innovation and time saving. While value is personal, these common buying criteria enable us to price based on each. There are only three things any of us buys - image, innovation and time savings. So while value is personal, there is enough commonality to our humanity and enough buying data […]
Don’t become addicted to low prices! Use the questions in this blog to get back on track to serving your customers in ways they want. It never ceases to amaze me how addicted people get to low prices. You probably think I’m talking about buyers, don’t you? Well I’m not. As I’ve stated in many […]
When it’s peak selling season, hold your price. You’ll not only enjoy greater profits, you’ll do so with fewer headaches. Great strategy? Or sheer folly? It’s early spring. I’m listening to the radio when I hear an ad for the premier carpet cleaning company in our city. The woman in the ad is telling her […]
When your price doesn’t support your marketing claims, you’re asking the buyer to choose which to believe – your message or price. Which do they believe? Has this ever happened to you? You’ve just found a stain on your favorite dress; the one that has everyone using words like “drop-dead gorgeous” when describing how you […]
