According to Gartner, spending on 3D printers is estimated to be at $669 million in 2014, a year-on-year growth of 62%. 3D printer vendors are in fierce competition to grab market share and prices have plummeted from over $20,000 to under a $1,000 now. And with this comes the impending price war. MakerBot has … Continue reading Price competition in 3D printing market
As markets mature, demand plateaus and competition gets intense. This WSJ article talks about some of the challenges American companies are facing as they try to grow their revenue. The expert quoted in this article says - "When you have such weak top-line growth, such weak demand, the competitive environment becomes much tougher, one of the … Continue reading Are you in a street fight for market share?
Image credit - TechCrunch If you are a developer, you are probably not too excited about this report from Gartner - unless you don’t care about profits. Gartner is forecasting that <1% of the apps on Apple’s app store will turn a profit by 2018. If you do care about profits, here is what you … Continue reading Forget freemium. Monetize.
Every holiday season we see retailers pull out all the stops to attract customers. The biggest consumer electronics retailers—Best Buy, Wal-Mart, Target Corp. and Staples Inc. have all pledged to match their rivals' prices as in years past. Best Buy has called price matching table stakes for competing during the holidays. “The game has changed, price is … Continue reading Price Matching – A holiday tradition retailers can do without
Adobe's recently announced that their flagship product, Creative Suite, will now only sold as a subscription service. This is further evidence that the days of selling traditional, out of the box software, in a buy-to-own model is slowing down. The emergence of cloud computing is not only changing the way consumers access and use software, … Continue reading Subscription Pricing: New Ground for Enterprise Software Vendors
When J.C. Penny CEO Ron Johnson announced the new fair and square pricing strategy, the JCP stock was trading above $40. Today, the stock is dipped below $20. Store traffic was down compared to last year. Losses are piling up and shareholders are getting restless. Wasn’t the fair and square pricing strategy supposed to bring … Continue reading What went wrong with JC Penney’s strategy?
The reference price effect is one of the nine psychological determinants of price sensitivity1. It states that “Buyers are more price sensitive the higher the products price is relative to that of their perceived alternative.” What that means is when customers are looking to make a purchase, they judge your prices in relative terms, not … Continue reading The Reference Price Effect on Price Sensitivity
From: "Audi India Raises Vehicle Prices on Rupee Fall" The past couple of decades have seen tremendous growth in companies in America and Europe entering emerging markets, such as India, China, and Brazil. One of the challenges they have had, and still have, is implementing a global pricing strategy. Several factors make developing a … Continue reading Pricing Strategy and Execution In A Globalized World
J C Penney is moving to what they call “Fair and Square” pricing. It involves permanently marking down their merchandise by at least 40%, so there will no longer be the deep discount sales that their customers have come to expect. They will now offer only three prices – Every day Prices, Month Long Value … Continue reading JC Penney’s New Pricing Strategy – Too Bold, Too Premature
From: “Google and Facebook Fly Into Server World’s Bermuda Triangle” http://www.wired.com/wiredenterprise/2011/11/server-world-bermuda-triangle/ In many industries, established marker leaders are being challenged by low-cost competitors – competitors that offer “good enough” products and services at very low prices. In this article the low-cost threat is coming from “original design manufacturers” based in developing Asian countries. The article … Continue reading Avoid The Premium Position Trap