When You Should Use Cost-Plus Pricing
May 5, 2021
Many companies use cost-plus pricing. I’d say nearly all hardware companies, and service companies with fixed costs, use cost-plus pricing in some way. And yet,
Category: Blog
Three Lessons from a P&G Price Increase
April 28, 2021
On April 20, 2021, the Wall Street Journal published an article titled Procter & Gamble Will Raise Prices in September. Here are the first three sentences:
A Question about Pricing Models
April 21, 2021
I once had a student from one of my pricing classes email me a question about pricing models. It sparked an insightful conversation, and I
Should Finance Influence Pricing?
April 14, 2021
To start with, I strongly believe finance should NOT set prices. Now don’t get me wrong – finance cares a great deal about pricing, because
How to Price Hardware Like it’s Software
April 7, 2021
The pricing traditions of software and hardware companies have been set for sometime. The main pricing-related difference between hardware and software is the incremental cost
Why You Need to Price Before, During, and After
March 31, 2021
The most common order in which a company prices goes something like this: come up with a brilliant product idea, create the product, then put
The Power of (Fake) Sales Prices & Discounts
March 24, 2021
Many top retailers have attempted to use discounts to lure more customers to their stores. But some have done this poorly, and found themselves in
The Role of Finance in Pricing
March 17, 2021
CFOs should be ideal people to drive pricing, but they usually aren’t. They are awesome because they care about margin. They build forward looking revenue
Pricing is NOT Driven by Supply and Demand
March 11, 2021
If you’ve ever taken a macro-economics course, you know that price is where the supply curve intersects with the demand curve … in theory. For
The Value of a TV Channel
March 3, 2021
I just read an article titled, “How Amazon and McDonald’s Use Bundling to Sell More of Everything.” Since I spend a lot of time thinking
