99 Cents, Should Your Prices End In It?
October 7, 2020
I’ve always wondered why many prices end in 99 cents. This curiosity was so intense, it led me to complete an entire doctoral thesis about
Category: Blog
Versioning: A Second Type of Price Segmentation
September 30, 2020
In a previous blog post, we talked about a general rule for price segmentation: charge the majority of the customers a standard price, and then
How To: Price Segmentation Using Product Differentiation
September 23, 2020
Price segmentation is the act of selling the same product to different people at different prices. For example, two people sitting in coach class on
Why Did the Airlines Eliminate Change Fees?
September 16, 2020
Last week, United, Delta, and American Airlines all eliminated their change fees. United led the charge, and Delta and American followed the next day. Before
Genuinely Free
September 9, 2020
When I read Chris Anderson’s book “Free: The Future of a Radical Price,” I found it insightful and thought-provoking. His basic premise stems from a
Coke’s Failure: When Price Segmentation Goes Wrong
September 2, 2020
Price segmentation is an incredibly powerful way to capture more value from differing levels of willingness to pay among your customers. Today, we’re going to
Coupons: Unlocking Power through Price Segmentation
August 26, 2020
Today we’ll explore a fun example of price segmentation: coupons. Let’s look at their usage through the lens of our price segmentation glasses. Remember, price
The Three Definitions of Value
August 19, 2020
Although value is a common word, in the pricing world, it has three distinct meanings. Whenever we hear a customer use the word “value”, we
Should You Add a COVID Surcharge?
August 12, 2020
Yes and no. Surprised? Here’s why I say this. Do a quick web search for “COVID surcharge”, and you will find hundreds of stories on
A Pricing Story: Explained
August 5, 2020
A friend sent me this story: An old man is running a fruit stand and displays a sign that reads 1 melon for $3, 3
