Monthly Archives: April 2008

When Buying Larger Quantities is a Worse Deal

When you buy in bulk, you typically get a better deal. On a per-unit basis, it’s cheaper to buy a 32-pack of Coca Cola at Costco than a single can in a convenience store. The same concept applies in industrial … Read More

Differentiating Commodities

Pricing power comes from differential value. If you offer more value, you can charge more. Value is perceived by the customer, however, so while you can suggest the value of your offering, the customer ultimately decides. Often, attributes that some … Read More

PPS Spring Conference

We’re at the Professional Pricing Society Spring Conference, with over 500 other pricing folks. The best comment I’ve heard so far came from someone who stopped by our booth this morning. He had spent 9 years in sales and recently … Read More

Luxury Pricing: Top This!

Although I’ve said before that with luxury items, the price is the value, I’m still occasionally astounded. Now along comes one of the most absurd items I’ve ever seen. Swiss watchmaker Romain Jerome created a watch they call “Night & … Read More

Not Free! Why $0.00 Is Not the Future of Business

Wired editor-in-chief Chris Anderson recently wrote a provocatively-titled article called Free! Why $0.00 Is the Future of Business. Anderson argues that the economics of computing on the net, where storage and bandwidth costs fall even faster than the cost of … Read More