We mentioned in a previous post that Microsoft is in the grips of a pricing dilemma. Changing paradigms have weakened Microsoft’s dominant position in operating systems and office productivity programs. Businesses and affluent consumers no longer upgrade regularly. What they … Read More
competitive pricing
What’s worse than inflation?
When commodity prices surged and governments around the world pumped hundreds of billions of dollars into markets, crippling inflation was a major risk. However, demand is so soft that the Consumer Price Index (CPI) fell a record 1.0% in October. … 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
Unbundling
Have you been part of a discussion where everyone at your company believed that their offering provided more value than a competitor’s, but the customers just don’t see it? The marketing team often thinks sales doesn’t know how to sell … Read More
French Court Rules Free Shipping Illegal
A French court ruled that Amazon’s free shipping policy violates a law that forbids booksellers from discounting more than 5% off list price. Rather than stopping the practice, Amazon has upped the ante, continuing the policy in the face of … Read More
Competitive pricing cuts tech profits, despite topline growth
Despite strong demand for technology products by both home and business buyers, competitive pricing is exerting strong downward pressure on profits and stocks. Hardware makers are suffering the most, from storage, to memory, to processors. As this Wall Street Journal … Read More
Supreme Court Overturns Ban on Minimum Price Agreements
In a decision that will have profound pricing impact, the Supreme Court overturned a century-old ban on restrictive pricing clauses between manufacturers and distributors or retailers. In an ideologically divided 5-4 decision, the high court ruled that the practice of … Read More
Blockbuster Goes after Netflix with Pricing
Punished by the the popularity of cheap DVDs, video-on-demand, and the Netflix DVD-rental-by-mail service, Blockbuster announced further price cuts on its subscription plans. These plans allow consumers to rent and return videos at stores or by mail. The added ability … Read More
How Far to Unbundle?
Unbundling offerings can be a great way to increase revenue by charging people for what they value. Hotels are experts at this. They offer a room at a relatively low rate, then charge $10 for breakfast, $9.95 for internet access, … Read More
Pricing Pressure Pounds AMD Shares
Shares of AMD took a beating last week after the Austin chip maker announced a 4th quarter loss and offered cautious guidance because of an ongoing price war of attrition with Intel. The loss is largely due to charges related … Read More