Pricing

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Creating and Destroying Value
I read Seth Godin’s blog every day.  Many days, what he says relates directly to pricing. Today’s blog—Is There a Marketing Person Leading the IT Team—is just one of those blogs.  
I read Seth Godin’s blog every day.  Many days, what he says relates directly to pricing. Today’s blog—Is There a Marketing Person Leading the IT Team—is just one of those blogs.  
Blog
Pricing Lessons from Sea World
An interesting pricing article appeared in Skift, SeaWorld’s Price Cutting Strategy is Fueling a Comeback. The title says a lot, but the details in the article are even more fascinating.
An interesting pricing article appeared in Skift, SeaWorld’s Price Cutting Strategy is Fueling a Comeback. The title says a lot, but the details in the article are even more fascinating.
Blog
How Much Should Uber Charge for a Driverless Ride?
Pricing, when launching a new product, is everything.  It is vital to the success of the new product.  But what happens when that product is revolutionary?  How do you go about pricing it so that the audience receiving it buys into what it is you have to offer?  Take a peek at this thought experiment!
Pricing, when launching a new product, is everything.  It is vital to the success of the new product.  But what happens when that product is revolutionary?  How do you go about pricing it so that the audience receiving it buys into what it is you have to offer?  Take a peek at this thought experiment!
Blog
How to Find Competitors’ Prices
The formula for “value-based pricing” is simple. Your buyer’s “willingness to pay” is equal to the competitor’s price plus positive differentiation value minus negative differentiation value. In other words, whatever your competitor is charging plus how much the buyer values what you do better, minus how much the buyer values what your competitor does better. Simple formula, but not so simple to implement. 
The formula for “value-based pricing” is simple. Your buyer’s “willingness to pay” is equal to the competitor’s price plus positive differentiation value minus negative differentiation value. In other words, whatever your competitor is charging plus how much the buyer values what you do better, minus how much the buyer values what your competitor does better. Simple formula, but not so simple to implement. 
Blog
Stop Sales Discount Authority!
Earlier this week I had the privilege of interviewing Mark Hunter (TheSalesHunter.com) for an upcoming Pragmatic Live podcast. I’ve been reading Mark’s blogs and books for a long time. He’s a sales trainer who really gets pricing. In our interview, Mark said something I hadn’t heard him or any other sales leader say before. “Don’t give any discount authority to sales.” Wow. 
Earlier this week I had the privilege of interviewing Mark Hunter (TheSalesHunter.com) for an upcoming Pragmatic Live podcast. I’ve been reading Mark’s blogs and books for a long time. He’s a sales trainer who really gets pricing. In our interview, Mark said something I hadn’t heard him or any other sales leader say before. “Don’t give any discount authority to sales.” Wow. 
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The Value of Pricing Data from Your Distributors
You are about to read some details of a project I was part of that collected and analyzed some pricing data from one of our distributors. You may not be able to exactly replicate this, but you can likely do something similar or even much better. 
You are about to read some details of a project I was part of that collected and analyzed some pricing data from one of our distributors. You may not be able to exactly replicate this, but you can likely do something similar or even much better. 
Blog
Don’t Upset Your Customers – Maybe
“Hello Mark, I have a pricing topic you may or may not want to use in a blog. I recently returned from a weekend trip to Denver. I booked the flights using Travelocity, because the cheap Southwest airlines fares are were all gone. I flew United to Denver and returned on Frontier. Everything about the flights was fine (on-time, cleanliness, quality of service, etc.), with the exception of my online check-in with Frontier. They charged me $40 for a carry-on package that I was not aware of at the time I bought the ticket. I was very mad for two reasons. 
“Hello Mark, I have a pricing topic you may or may not want to use in a blog. I recently returned from a weekend trip to Denver. I booked the flights using Travelocity, because the cheap Southwest airlines fares are were all gone. I flew United to Denver and returned on Frontier. Everything about the flights was fine (on-time, cleanliness, quality of service, etc.), with the exception of my online check-in with Frontier. They charged me $40 for a carry-on package that I was not aware of at the time I bought the ticket. I was very mad for two reasons. 
Blog
Who Drives Pricing in Growth Companies?
From a reader: “Mark, I love your daily LinkedIn posts. Thanks for sharing. I find pricing to be a fascinating topic. Question: In your opinion, who should and who usually drives pricing within (tech) growth companies? Most companies I’ve spoken to, it’s all over the place. I feel like it should be a product management function (with inputs from all the relevant stakeholders). What’s your experience?” 
From a reader: “Mark, I love your daily LinkedIn posts. Thanks for sharing. I find pricing to be a fascinating topic. Question: In your opinion, who should and who usually drives pricing within (tech) growth companies? Most companies I’ve spoken to, it’s all over the place. I feel like it should be a product management function (with inputs from all the relevant stakeholders). What’s your experience?” 
Blog
What Is Anchoring?
A colleague asked me: “Mark, what is anchoring? I wanted to get your explanation of the concept with regard to pricing and maybe an example if you have one.” Anchoring is a strange phenomenon where the mere act of thinking about a high number biases that person toward higher numbers. 
A colleague asked me: “Mark, what is anchoring? I wanted to get your explanation of the concept with regard to pricing and maybe an example if you have one.” Anchoring is a strange phenomenon where the mere act of thinking about a high number biases that person toward higher numbers. 
Blog
Pricing Is Poker, Not Chess
In her book, “Thinking in Bets: Making Smarter Decisions When You Don’t have All the Facts,” Annie Duke started off with “Life is Poker, Not Chess.” Wow. Have you ever read a book that gave you a way of thinking that is just common sense, but you really needed someone to make it clear for you? 
In her book, “Thinking in Bets: Making Smarter Decisions When You Don’t have All the Facts,” Annie Duke started off with “Life is Poker, Not Chess.” Wow. Have you ever read a book that gave you a way of thinking that is just common sense, but you really needed someone to make it clear for you? 
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