I enjoy improving margins through higher pricing as much as (perhaps even more) than everyone. However, what I’m learning is that the real creativity of better pricing involves designing pricing strategies to grow your business by activating dormant customers. So contrary to popular thought, activating dormant customers through targeted lower prices is a key strategy that all companies need to focus on.
Please check out my latest article for the Harvard Business Review which discusses how to use uncertainty to separate those who truly deserve a discount from posers who claim they need one. Just as importantly, this article reveals my s-e-c-r-e-t to saving a fortune on hotels – something that we all can appreciate too!
As always, thank you for reading my blog.
Posted on March 26th, 2015 (0 Comments)
For the most part, Uber has been a media and investor darling (recent investments value the company in excess of $40BN). And while I have been a fan of Uber, there are cracks to be exploited and it’s too early to count the taxi industry out. In particular, a key reason for Uber’s success has been creatively exploiting a regulatory loophole. One simple step, deregulation, can wreak havoc on Uber’s valuation.
Please check out my latest piece for the Harvard Business Review which gives pause to the Uber mania and makes one wonder, “is Uber’s valuation bloated?”
As always, thank you for reading my blog!
Posted on February 13th, 2015 (0 Comments)
Boy, I never thought we’d see gasoline prices drop to $2.50 a gallon again…for some reason, when I fill up these days it’s with a smirk of satisfaction on my face.
With oil prices collapsing, it’s easy to breathe a sigh of relief and think OPEC’s stranglehold is over. My latest piece for the Harvard Business Review discusses a little known strategy employed by cartels. The common thought is collusion leads to higher prices. This piece argues that especially in high fixed cost industries, it may be a profitable detour to higher prices. So enjoy the cheap gas but I’d hold off purchasing that gas guzzler…as higher prices are on the horizon.
As always, thank you for reading, Apologies for the recent writing breather – regular blogs are back!
Posted on December 11th, 2014 (1 Comments)