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 … Read More
Blog
You Don’t Have a Supply Problem, You Have a Pricing Problem
This is one of my favorite maxims for companies that say they can’t keep up with business. (Granted, it’s a great problem to have.) Seth Godin phrases it slightly differently, writing “scarcity is a choice” in a great post on … Read More
An Innovative Way to Sell $50 T-Shirts
Here’s an interesting pricing model for t-shirts. 200nipples (yes, even the name is, umm, remarkable) sells limited edition runs of 100 tshirts. The first shirt costs $1, the second $2, all the way up to $100. This has the nice … Read More
Experimental Economics: Finding Millions of Dollars in the Haystack
Wired recently ran a story on Experimental Economists, who model complex scenarios and attempt to optimize outcomes for large companies and government agencies. My reaction to the story was “wow– that’s what Mimiran does all the time, we just didn’t … Read More
The Psychology of Price Increases
In last week’s post How to Raise Prices, I referenced two interesting articles on techniques for raising prices, and also suggested using unbundling to differentiate between customers who want maximum value and customers who want minimum price. Today, let’s look … Read More
Choosing the right pricing metric
So much of pricing is about choosing the right metric. In other words, the dollars per what? Gasoline is priced in dollars per gallon (or per half gallon in some cases where the pumps can’t display prices above $3.999– how … Read More
How to Raise Prices
With the economy in the state it’s in and the price of energy going up, a lot of companies are making some tough pricing decisions. Their costs are going up, squeezing their margins. Also, they are worried that if they … Read More
“How are we different?” not “How are we cheaper?”
Most new businesses fail. They typically fail not because they can’t deliver value, but because they can’t capture enough of that value to turn a profit and grow. Capturing value requires a clear value message and an appropriate pricing policy. … Read More
Price Discrimination on Priceline
As a pricing person, priceline.com is a fascinating site. Priceline is like a “normal” travel site where travelers can purchase airline tickets, hotel rooms, and rental cars, but it also offers a “Name Your Own Price” feature. This lets people … Read More
Overcoming price objections in a down market
BNet, which is heavily focused on sales, has a couple helpful posts on pricing. Three Successful Pricing Strategies for a Downturn urges you to react quickly when necessary, but don’t hurt the long term to save the short term, and … Read More