Monthly Archives: July 2005

Comments on The Tyranny of Averages

Welcome newsletter readers. For folks coming directly to the blog, this is a space to comment on a recent newsletter article about the danger of averages.

Gasoline Pricing “In the Zone”

The Greenwich Citizen posted an editorial the other day calling for an end to zone pricing. “Zone pricing” means carving up markets into small zones, based on demographics and other information, and varying prices according to zones. Generally, zones with … Read More

Pricing Pressure Continues to Pound Airlines

I read an interesting article on airline pricing over the weekend. Much of it is not surprising– customers want low prices, and they get them where there is competition. Most airlines have a cost structure that makes it almost impossible … Read More

GM Reports Loss

Folks waiting to see how the Employee Pricing for All program turned out probably already know the answer. GM posted a Q2 loss of $286M, with a $1.2B loss in North America.

Bear Stearns Cites Pricing In Anheuser-Busch Downgrade

Bear Stearns downgraded the beer giant, noting that they are “highly skeptical of the company’s aggressive price discount strategy.” AB’s aggressive pricing is confusing to me. They have generally enjoyed a small but significant price advantage over Miller and other … Read More

HP Rolls out $249 Desktop

In 1997, Compaq scored a major pricing coup by offering the first major-label desktop for under $1,000. Now, Compaq acquirer HP is offering a desktop (sans monitor) for $249, almost to the magic $199 consumer electronics price point. With back-to-school … Read More

Oracle Pricing “A Comedy of Fractions”

We’ve had several posts on how advances in chip technology make the traditional “per-CPU” software pricing model less and less compelling. Oracle had stuck firm to its “one core = one CPU” policy. They’ve relented, but in a way that … Read More

Delta Rethinks Fare Caps

Delta raised their one-way, walk-up fares caps from $499 to $599 for coach, and up to $699 for first class. They attributed the fare increase to higher than expected fuel costs. As the reader who sent this piece in asked: … Read More

Saks Submits Documents in Markdowns Lawsuit

As noted earlier, clothing vendors have started suing retailers over payments. The heart of the matter is the actual price the customer pays for the merchandise, which then gets divided between the retailer and the maker. So if the customer … Read More

Sorry If I’ve Lost Any Comments

I’ve been trying to streamline the commenting system, and I think most comments from the old system have been preserved, but if I’ve missed any, particularly if you asked questions, please let me know.