Pricing & Monetization Blog: Page 21

I recently read an article in The Christian Science Montior. It was entitled Housing market too hot? Six ways to win a bidding war. As an economist with a particular interest in the housing market, I had no... [read more]

I'm usually a pretty stingy fellow. I'd much rather talk about money than spend it. Today I broke from tradition. I made an excellent investment that will ensure my financial future. Image... [read more]

I was speaking to a physicist at MIT last week. He offhandedly referred to my area of study (economics) as augury without the benefit of pretty birds. His vocal distaste for my field is neither unusual nor unexpected behavior for the average physicist. He and his kind are nothing but a legion of malcontents who live in a constant fear that... [read more]

I've heard a number of know-it-alls talk about the importance of differentiation. They say that when you differentiate your product, you can charge more. In many cases, this is absolutely true. If customers think that you're different than the competition, you open their minds to the possibility that your offerings might be worth more than the... [read more]

I'm not trying to trick or mislead you with the title. Don't worry about fine print or payment terms. It's all very simple. Given two prices, will the higher one ever seem lower than the other? The answer is surprisingly yes. It's counter-intuitive, so let me explain a secret. People are not rational. They operate in the... [read more]

Many people have come up with interesting theories about businesses. A small number of them had the good sense to name their theories after themselves. Those who did became instant thought leaders and a measure of celebrity status. As I discussed in my semi-satirical masterpiece The Scumbag's Guide to Content... [read more]

I went to my local burrito shop and took a hard look at its menu. Something jumped out at me. Can you see it? Here's a hint: look at the text in the big red box. The... [read more]

The key to long-term profitability is to maximize the spread between revenue and costs. The larger the difference, the larger the profit. I usually suggest focusing on increasing revenue, because revenue has no limit. It's not impossible for firms to earn ten, one hundred, or even one thousand times more... [read more]

Many businessmen mistakenly turn to economists like John Maynard Keynes and Ludwig von Mises for insights into market strategy. This is a bad idea. Both thought leaders are overrated dilettantes whose work pales in comparison to that of my academic idol. When I seek a greater understanding of pricing theory, I always turn to the brilliant... [read more]

Need a pricing consultant? Contact... [read more]