Seth Godin has another great post about the price of content (Compared to perfect: the price/value mismatch in content), in which he suggests that “there is no thrift store for content.” In other words, content gets compared to perfect, not other similarly priced alternatives, as happens in most other categories. Godin notes that if we [...]
As a heavy iPhone user, I was less than thrilled about AT&T’s plan to end “unlimited” data plans. Apparently, I consume over 3GB/month, despite doing most of my heavy lifting through WiFi. This means I will either need to reduce my network consumption, or pay more to AT&T. (I never hit the 5GB limit of [...]
Here’s a discussion with Gerhard Schwandtner, founder of SellingPower and host of the Sales 2.0 Conference. After decades in sales, Gerhard sees how the artificial divisions between sales and pricing functions lead to suboptimal results, and he offers some advice for improving the situation. How does sales think about pricing?Pricing is like the passport that [...]
We get a lot of queries from companies who say “our product/service/gizmo is so much better than the competition’s, but our customers don’t perceive it. How do we get them to see the value?” It’s a great question. The “envelope” of possible prices stretches between your cost and the perceived differential value of your offering. [...]
Next week I’ll be the guest speaker as part of an interesting webinar on accelerating SaaS (Software as a Service) revenue. Customer segmentation and pricing are critical components to doing this successfully. Register, or read on for more information. 4 Ways to Accelerate SaaS Revenue July 30, 2008, 2:00PM EDT Software as a service (SaaS) [...]
Following up on an earlier post, here’s another method of helping customers segment themselves. (Thanks to TripTouch.) Gives new meaning to “capitalism.” While we don’t recommend this kind of segmentation, we do like the notion of letting customers self-select into the offerings that are right for them. This happens all the time, often without us [...]
There’s a short, insightful article by John Quelch at the Harvard Business School newsletter about commoditization. Quelch writes: …even when a raw material has no value added and quality standards are set by law or the industry, there is still plenty of opportunity for differentiation around availability, delivery, shipment quantities, payment terms, and all the [...]
It’s almost the end of the year, which means many companies are putting the final touches on their 2008 price lists, and a lot of people are getting ready to have uncomfortable conversations with customers about why their prices are increasing. Here are 7 tips for raising prices. As you consider them, think not only [...]
We don’t usually (OK, ever) link to LitKicks, a site that discusses literature, but they have a recent post on the pricing strategy for literary fiction which is quite interesting. The rise of mass-market retailers has created pressure to issue books in paper back, rather than starting in higher-margin hardcover, then going to paperback. Publishers [...]
