Pricing & Monetization Blog: Page 9

I've seen all sorts of rants against taxes. Many are against income tax; others are against taxing purchases. There is one type of tax that is far more harmful to the economy than any other, and it was levied against me. I speak of course about the car tax. I am first to agree that governments need to collect revenues in some manner. That... [read more]
Many companies are known their low prices. These firms usually decide to to offer their wares with tiny pricing markups. Occasionally they become even more aggressive and sell their products at a loss. Most consumers would probably be overjoyed to be on the receiving end of either of the above scenarios. After all, why would anyone want to... [read more]
I've officially become a grumpy old man. Do you know why? Yogurt. That's right. Yogurt. When I was growing up there were a few different flavors, but for the most part, yogurt was a very uninteresting food. It was basically a bunch of milk with a bit of fruit and a whole lot of bacteria. Everyone knew what it was, but there was one big... [read more]
Image courtesy of TapRun,... [read more]
Businesses have discovered many useful techniques for keeping their profits high. One is as follows: When demand is high, raise prices. When demand falls, reduce prices. Amazing! In many cases, the strategy I outlined is sufficient for firms to ensure large profits. As readers of my software pricing book are aware,... [read more]
I've been sampling some of the finer eating establishments in my town. Some have been fantastic, others less so. One sticks out in my mind: a restaurant that has built a reputation on its burritos. Upon my arrival, I was shocked by the very long line of customers ahead of me. The food must be great if so many were willing to... [read more]
Bringing in the experts is a very popular suggestion during periods of uncertainty. It's great to spend a fixed amount (even if it's a very large fixed amount) in order to receive the solution to a pressing concern. Under conventional thinking, as long as the cost of the expert opinion is less than the profit (or savings) to be gained, it's... [read more]
Price gouging sounds like an awful term. It refers to the practice of raising rates significantly above what is considered "fair" and often occurs in the presence of an economic marketplace that has experienced a significant shock. One classic example of a pricing gouge is the increase in... [read more]
We live in a world of science and mathematics. Data must be collected. Hypotheses must be proved. Formulas must be applied. In many cases, a rigorous approach can do wonders to improve business outcomes. Unfortunately, this type of rigorous approach can mislead economic actors into purchasing the wrong offerings. One of my first... [read more]
I was perusing the Dell website when I came across what looked like the dumbest innovation in the history of online marketing. The site added a "find coupon" button to the ordering page that appears after a user adds a product to his shopping cart. Conventional (though often incorrect) wisdom states that a consumer who has added an item... [read more]
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