The Art of Raising Prices: Lessons from Amazon Prime

With the economy on the upswing, many of you are considering increasing the price of your products and services. As a template of how to effectively do this, consider Amazon's recent price hike for its Prime service. Overall, the Seattle-based retailer did a solid job.

Please check out my latest piece for the Harvard Business Review which discusses Amazon's game plan as well as additional tips to ensure success with your price increase.

As always, thank you for reading!

Posted on April 2nd, 2014 (0 Comments)

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Why Uber Needs Clearer Pricing

Uber, the technology/private car start-up, is the darling of Silicon Valley. I’m a huge fan of Uber (use it regularly) but the role of price in Uber’s brand is terribly confusing. While Uber heavily promotes discount prices, it’s fair for customers to be surprised at its surge prices which can reach as high as 8 times the normal fare.  Surge fares are not part of Uber’s “everyone’s private driver” low price brand. This ambiguity is hurting Uber’s growth.

Please check out my latest piece for the Harvard Business Review which discusses the role of price in a company’s brand – and suggests that Uber take some pricing lessons from rock star Kid Rock.

As always, thank you for reading!

Posted on March 5th, 2014 (0 Comments)

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Amazon Should Unbundle Prime

Amazon recently announced that it plans to raise the price of its Prime program by $20 - $40 (25% - 50%).  Prime has proven to be a great marketing vehicle with its members representing  roughly 36% of its revenues.  The concern is such a steep price hike will make Prime less attractive, hence adversely affecting Amazon’s growth. UBS recently downgraded its stock from a buy to hold.

It’s disappointing that such a cutting edge company as Amazon still thinks of pricing as a simply two way “up or down” lever. So old school and unimaginative! Please check out my latest piece for the Harvard Business Review which provides a straightforward pricing for profit and growth solution for Amazon Prime.

As always, thank you for reading!

Posted on February 13th, 2014 (0 Comments)

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