Variable Costs: Do They Matter in Pricing?
What exactly is the role of variable costs when it comes to pricing? This might already be obvious from the post “Fixed Costs Matter to
What exactly is the role of variable costs when it comes to pricing? This might already be obvious from the post “Fixed Costs Matter to
The first time I heard the concept – Price for Market Capitalization – was from a close friend of mine, Brent Bilger. Brent has been
It’s true. Your fixed costs matter sometimes, but they are not relevant to your pricing decisions. Your prices should be determined by your customer’s willingness
Cost plus pricing is one of, if not the most commonly used pricing technique in business today. After all, it’s easy to implement, it ensures
Many companies give a discount to customers who buy in volume. Do you do this? Stop reading for just a moment, and consider: Why do
In the Harry Potter books, each new student who enters Hogwarts is placed into one of four houses by “The Sorting Hat”. This animated hat
As you can see by the attached image of an email Netflix sent, they are raising prices again. Let’s take a moment to evaluate their
My last several subscription clients all wanted to raise prices. They provide excellent value to their customers, and some even have ROI studies to prove
In 2010, Seth Godin published a thought-provoking blog on pricing: his position is that for more expensive goods, where a customer is relatively loyal, you
Despite what some may say, pricing is not a business strategy. Your strategy is the big picture of how you compete relative to your competition