How To: Price Segmentation Using Product Differentiation
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
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
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
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
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
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
Value Based pricing is the pricing technique most highly recommended by consultants and academics. The concept is simple: set a price so you capture what
The second most powerful tool you have available when it comes to pricing is price segmentation. Every company – big or small – must be
Many pricing people are brilliant and love numbers more than most. When we figure something out, we are usually right. Yet, too often the rest
Thomas Nagle, the father of modern pricing, created EVE or Economic Value Estimation. It’s hard to say exactly what EVE is. It’s a template, a
The two most profitable pricing decisions any company can make are: Adopt value based pricing Use price segmentation Let’s briefly define these terms… Value based