How do you set prices today? Generally, when I ask potential clients this question, they tell me they set prices to match their competitors, only 5% less. This is a terrible pricing strategy. As a small company, it is extremely unlikely that you will be...
Some department stores use pricing to drive you to buy now, in other words-urgency. They have lots of short single day, weekend or three day sales. These sales are generally not on everything, but a lot of items are included. Most often, they send out...
Use Pricing to Drive Demand Ever bought pizza on a Monday? Not too many people do. Most people take time to enjoy their weekends and recharge for the week ahead. This includes eating out and doing other things they enjoy (as well as tasks around the...
You may have gone to a movie theatre on a weekday afternoon and found very few people there. You might even ask yourself why they bother to be open. The answer is simple economics. Movie theatres have a lot of fixed cost-Rent, utilities, etc. The...
Pricing Fast food restaurants use pricing to drive your behavior. Most people are familiar with a selection of food offerings at Fast Food restaurants that are heavily discounted. These have many names such as the Dollar Menu or the Value Menu, etc. The restaurants are trying...
For the next couple of posts, I will be telling you about how large companies use pricing to drive your behavior in ways that benefit them. Everyone is familiar with how most cars, SUVs and trucks come in different trim levels. The higher the trim level,...
An effective pricing strategy is one of the most powerful tools any company has to increase profitability. Very importantly, it is a business tool completely within your control. You can use pricing to drive customer behaviors into patterns that increase profitability. Specifically, pricing can be...
Please take a look at an article I wrote that was just published in the March edition of the Rhode Island Small Business Journal print and online versions (www.RISBJ.com) called How to Pick the Best Features for a New Product or Service. In this article, I...
