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
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!
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?