Preorders for the Apple Watch kickoff today and expect the wild hype that Apple is expert on - ever notice how there’s always a shortage of Apple’s latest product? A few interesting facets of the Watch’s pricing standout: (1) Apple is releasing a variety of styles – and while the styles are different, the inherent technology is the same (typically Apple releases a few models that differ by technology) and (2) The price range of the Apple Watch ranges from $349 to $17,000. No, $17,000 is not a typo!
Apple is hoping that the Watch will be its next big hit – its pricing strategy isn’t doing it any favors. Please check out my latest piece for the Harvard Business Review which discusses why I think Apple blew it on its pricing strategy and what it should have done instead.
I discussed this piece on Bloomberg West this afternoon, here's the clip.
Posted on April 10th, 2015 (2 Comments)
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)