Smart Pricing: New Ideas on an Old Problem
Very few of us do a good job setting prices. I have seen several companies, large and small, set prices, and it’s not nearly as rational and analytic as it should be. And when it is rational and analytic, the process is usually too narrow, ignoring several important issues.
A good step forward in thinking about pricing is the new book, Smart Pricing, by Jaqmohan Raju and Z. John Zhang. The blog Knowledge@Wharton has an interview with Raju and Zhang.
The book has two key values. First, it offers a list of major pricing strategies. Managers often get so used to doing things one way that they don’t reconsider whether they are using the right method. Smart Pricing is a guide to strategies that every business should consider.
The second value is that the book occassionally shakes up one’s thinking. That’s especially true (at least for me) of the chapter on price wars. I have advised clients not to engage in a price war. Raju and Zhang explain why my blanket advice is wrong. There are times when a price war is the right strategy. Certainly there are many more times when it is the wrong strategy, but it’s a tool that should be in every manager’s toolkit.
Step One for managers with the worry that maybe their pricing strategy is not the best possible: think about it, considering a wider range of options than you have discussed in the past. You should also consider bringing in a consultant (hint, hint) to help broaden your thinking.
www.businomics.com
“Dr. Bill Conerly is the consultant who connects the dots between the economy and business decisions. He holds a Ph.D. in economics from Duke University and was formerly Senior Vice President at First Interstate Bank.
Dr. Conerly is author of Businomics: From the Headlines to Your Bottomline—How to Profit in Any Economic Cycle (www.businomics.com/), which provides business leaders with a framework for understanding current economic news. He is co-author of Thinking Economics, a multi-media high school economics curriculum used in 24 states.”
Source:
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).