Pricing & Monetization Blog: Page 26

I've written about the razor and blades pricing method before. It's a strategy that involves selling a heavily-discounted product (razor) with the intention of making up for lost profits via sales of routinely-purchased add-ons (blades). Many people see the strategy as a simple... [read more]

I may have struck a nerve with my previous post about how Georgia residents are subsidizing my Florida-based company. Merely a day after publishing the article, an unknown motorist (and presumably Georgia taxpayer) sideswiped my car and caused a bit of damage to my... [read more]

My company is proud to announce that it has finally joined the ranks of household names like Tesla, Wal-Mart and... [read more]

Are you familiar with the concept of congestion pricing (aka surge pricing)? It's a pricing method that works under the assumption that some people are willing and able to pay higher prices than others for a given item at a given time. As such, vendors can raise prices at times of peak demand, pushing... [read more]

One of the biggest obstacles facing new entrants in a market is getting noticed. How can vendors get in front of potential buyers and put themselves forth for consideration? Excellent question! I created a working draft of a discoverability guide. It's pretty rough at the moment, but it's already a... [read more]

Do you want to raise your prices? A company that raises its rates must make a decision. Should it grandfather its existing users into the old pricing scheme, or should it demand higher payments from both new and existing customers? Many firms prefer the former, because it looks inherently safe. They grandfather existing users... [read more]

What's a price taker? A price taker is a business that has minimal pricing power. In other words, it is forced to provide whatever offerings a customer demands at whatever the going rate happens to be. This is in contrast to a price maker who sets his rates... [read more]

Pricing Hits the Mainstream Press! If you like video games, you've almost certainly heard about the kerfuffle over Electronic Arts' monetization strategy for Star Wars: Battlefront II. As it turns out, unlocking all of the game's features will... [read more]

I've created a new framework for analyzing firms' pricing power. If you'd like to learn more, please read the description of the DUMB pricing power framework. Comments and suggestions will be warmly... [read more]

Let me know if you've heard this story: A brilliant inventor comes up with an idea, spends a weekend putting it on the web, and now runs a multi-billion dollar empire. Ever since the launch of the million dollar homepage, we've... [read more]