Rob Docters, Mike Reopel, Jeanne‐Mey Sun and Steve Tanny
While the US economy seems to be in an upswing, there is still plenty of downside for some companies. But a downturn need not be seen as a giant sucking sound, eliminating all of…
Abstract
While the US economy seems to be in an upswing, there is still plenty of downside for some companies. But a downturn need not be seen as a giant sucking sound, eliminating all of a company’s pricing power. Through astute use of strategies such as the ones discussed in this article, many companies can continue to raise prices. The authors discuss such pricing strategies as working around budgets, using tools other than list price to cut price, bundling and tiering goods and services, and locking in your best customers.
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Rob Docters, Mike Reopel, Jeanne‐Mey Sun and Steve Tanny
Much attention has been paid to the pricing of goods, but services now constitute almost half of the US economy and they have their own pricing requirements. Services differ from…
Abstract
Much attention has been paid to the pricing of goods, but services now constitute almost half of the US economy and they have their own pricing requirements. Services differ from goods in that the choice of pricing structure is more fluid, as for example in determining the unit of charging. In addition, services tend to be more variable in quality because they are impacted by unique customer needs and environment. Thus, a framework for taking into account quality differences (risks) is integral to the price structure.
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Robert G. Docters, Michael R. Reopel, Jeanne‐Mey Sun and Stephen M. Tanny
For many companies, raising prices can result in customer defections and reduced volumes. The right strategy for increasing prices can result in increased customer satisfaction…
Abstract
For many companies, raising prices can result in customer defections and reduced volumes. The right strategy for increasing prices can result in increased customer satisfaction and fewer defections. Several approaches for raising prices involve changing the customer value proposition at the same time as changing the price. This makes it harder for customers to identify the changes and they are less likely to react. Finally, a close examination of lifecycle patterns in customer usage allows companies to structure their prices so that customers “grow” into a price increase over time.
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Rob Docters, Mike Reopel, Jeanne‐Mey Sun and Steven Tanny
Looks at the language of price, which is the conclusion that customers reach after learning of a company’s price structure and billing policies. Stresses product managers and…
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Looks at the language of price, which is the conclusion that customers reach after learning of a company’s price structure and billing policies. Stresses product managers and marketers know that price messages need to address a number of audiences. States that lack of attention to price structure means that it may be difficult to construct the right message to send to decision makers. Concludes pricing and billing should reinforce company messages, sent in sales presentations and advertisements.
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Robert G. Docters, Michael R. Reopel, Jeanne‐Mey Sun and Stephen M. Tanny
Providing customers with value is often not enough for a company to operate profitably. While ensuring that a product or service offers value to users and customers, there must be…
Abstract
Providing customers with value is often not enough for a company to operate profitably. While ensuring that a product or service offers value to users and customers, there must be a conscious plan to capture a portion of that value. This is called monetization (turning value into money) and is often sudden and destructive of value, as when managers employ short‐term tactics to meet a budget shortfall. Smarter monetization strategies include ways of voluntarily extracting value though brand management or creating a market for liquidating inventories. This will allow managers to meet budgets without compromising company value.