Monthly Archives: May 2005

Lessons in Value-Based Pricing

Perhaps the ultimate in value-based pricing comes from hedge funds (where else?). Hedge funds purport to offer a “sure bet” on the market, using hedges to protect against downturns in any particular area. In reality, hedge funds are a largely … Read More

Asda to Abandon EDLP

Wal-Mart owned retailing giant Asda is stepping back from every day low pricing (EDLP) in an effort to compete with Tesco and Sainsbury. Wal-Mart upended the conventional wisdom on retail promotional strategy by avoiding sales and coupons. This eliminated the … Read More

Price of Music Trends Downward

How do you price art? (And is Britney Spears really an artist?) The way the major music companies have answered this question has been a common topic in my newsletter and in earlier posts. Summary: since the consumer had few … Read More

Vendor Sues Retailer Over Withholding Payments

As we noted earlier, clothing makers and retailers are tussling over payments, and now the fight is ending up in court. A clothing maker has sued Dillards over $200,000 in deductions that Dillards claims resulted from discounts (meaning that Dillards … Read More

Pricing Always Comes Back to the Market

Ever wonder how people figure out cost-of-living adjustments? People go and buy a representative “market basket.” Someone sent me this piece, thinking perhaps I could get to Italy to do some kind of pricing survey (it’s only for military personnel … Read More

If Airlines Sold Paint

An Oldie but Goodie– this one is all over the ‘net. I’m not sure who the original author is. Buying paint from a hardware store Customer Hi, how much is your paint? Clerk We have regular quality for $12 a … Read More

Software Pricing Followup: Fractional CPU Pricing

Turns out IBM offers pricing based on the fraction of the CPU you actually use. (This requires licensing some compliance software from Big Blue’s Tivoli unit.) This can help push customers onto larger, higher-margin servers, while also reducing customer’s administration … Read More

Pricing Power Remains Elusive

Bloomberg reports that companies are not gaining the pricing traction they had hoped for as the economy picked up. “There is no pricing power, and the notion that it’s returned is just wishful thinking,” says James Smith, a former Federal … Read More