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
Avoid The Premium Position Trap
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
If One Price Is Good, Two Are Better
In 2007 Amazon created a market for e-readers by introducing the Kindle. It was just one device - 6 inch display, 250 MB of internal memory and could hold approximately 200 non-illustrated titles. Fast forward 4 years and Amazon offers 7 different versions of the Kindle – from the 6 inch Wi-Fi version to the … Continue reading If One Price Is Good, Two Are Better
It’s not raising prices; it’s unbundling. And making sure it stays unbundled!
My thoughts on the Netflix pricing changes and the creation of Qwikster. Let me start by clarifying one thing - Netflix wasn't trying to increase prices. The company was just unbundling its offerings to better target its customer segments. The creation of Qwikster – a DVD rental only company - further validates Netflix’s intention to segment their … Continue reading It’s not raising prices; it’s unbundling. And making sure it stays unbundled!
Is Price An Impediment To Sales?
Traditionally, pricing exercises are done with a revenue or sales margin target in mind. Marketers fail to realize that value based price setting can also serve as a useful way to segment the market and fence competition off. I’ll try to address both these very briefly in this post. As a pricing strategist you need … Continue reading Is Price An Impediment To Sales?
Ashwin Somakumar 