Pricing When Costs Go Up
Costs don’t drive pricing. Willingness to pay drives pricing. Fixed costs never matter to pricing. Variable costs barely matter to pricing. These are truths. However, costs
Costs don’t drive pricing. Willingness to pay drives pricing. Fixed costs never matter to pricing. Variable costs barely matter to pricing. These are truths. However, costs
From a podcast listener: Mark, hello. I just recently started listening to a couple of your podcasts and enjoy hearing various commentaries on the world
I just got an email from Starbucks Rewards with the headline, “Some of your Stars are expiring.” My first reaction was to figure out when
We pricing people often use the phrase Willingness to Pay. The profit maximizing price for any customer is to charge what they are willing to pay. We
For any company, an advantage is a distinctive competency: something you’re great at, and your competition isn’t. It gives you a unique position in the
Many companies use cost-plus pricing. In fact, I’d say nearly all hardware companies, and service companies with fixed costs, use cost-plus pricing in some way.
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:
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
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
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