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Are you pricing based on cost rather than value? Why?
At Pricing Gurus, we believe that value-based pricing allows companies to achieve higher profitability and a better competitive position. Some companies disagree with that perspective, or feel they are stuck with cost-based pricing. Let's explore a few reasons why value-based pricing is generally superior.
Dutch ovens: paying a lot more means better value
An article on Dutch ovens in the September/October 2018 of Cook’s Illustrated gives food for thought (pun intended) about the relationship of between price and value. Sometimes higher value for a buyer means paying a lot more money – good news for the seller too. Dutch ovens (also known as casseroles or cocottes) are multipurpose,
Methow Valley Ski Trails gets pricing right
The Methow Valley is a remote area in Eastern Washington State. It’s a destination recreation area year-round, and even more so in the winter when the North Cascades Highway is closed making a circular drive impossible. I’ve enjoyed skiing the trails in the Methow Valley on a number of occasions, and on a recent visit
This survey Hertz: lack of thought
I recently took a survey sponsored by the Hertz Corporation, intended to assess the appeal of several new approaches to services. This post discusses some of the problems I found, and why you should avoid creating your surveys like this one.
When More is More: taking advantage of purchaser (mis)understanding of discounts.
Should you offer a discount to kick start sales of a new product? Or to revive sales of a forgotten product or service? Pricing Gurus recommends you hold the line and treat discounts as temporary, lest you simply lower the prices.
Pricing Innovations – A Tale of Two Companies
Being innovative in pricing takes some good old-fashioned marketing work. You not only have to understand the value that you are delivering, but you also have to understand the personas that make up your customer base. Pricing Gurus has been tracking two companies that made significant innovative changes in their pricing structure: J.C. Penney and
Van Westendorp pricing (the Price Sensitivity Meter)
Practitioner’s guide for those conducting their own pricing research, focusing on the Van Westendorp Price Sensitivity Meter.