The revenue model is one of the most important elements of a firm’s strategy. It defines the ways in which a firm gets compensated for the value that its products or services generate. In the old days, revenue models primarily consisted of picking a “good” price. Connected…
Selling software isn’t like selling cars or real estate. Don’t sell yourself short.
Take a look at these two coupons Target stores printed out at checkout at the same time. What is your take on the reasoning behind this? If you have the read the famous Target Big Data story about …
This is a luxury toy collection at a level above yachts or private islands.
This quote comes to us from Ms. Allie Webb, the Founder and CEO of Drybar a blow dry only salon. A blow dry salon is not like any hair salon. It offers, just as name indicates, blow dry and styling…
Fences are never beautiful. May be the picket fences are. But when designed to keep two sides from moving easily from one side to the other they are not usually described as beautiful. Price fences…
You’re probably not aware of it, but the price of your product includes a risk discount.
The ubiquitous dollar store is the American dream writ small.
Take the same item to 4 different pawn shops and you might get offers that vary by hundreds of dollars. Here’s why.
Have you ever bought sweet tickets for a ballgame, a concert or some other live event, only to find out that you couldn't make it? The internet certainly
A growing number of new businesses are following in the footsteps of successful companies such as Dropbox and Skype, by giving away their products and services free to build a customer base. But for some, that 'freemium' strategy is turning out to be costly.
This is not a matter of "you get what you pay for."
Proximity Designs is a for-profit design company whose goal is to create products cheap enough--and good enough--that they can be bought by poor farmers, instead of just giving them aid.
See why evaluating your value metric and aligning it with your pricing strategy is the key to optimizing your SaaS business for profits and growth.
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Constant bargain hunting makes us value all the wrong things about shopping.
At IHOP and Applebee's, menus are sales documents. And navigational guides. And explainers.
We thought we were being smart with innovative pricing models. We were wrong, but we finally righted the ship.
getAbstract Summary: Get the key points from this book in less than 10 minutes.Ronald J. Baker makes a sound economic case that the traditional method of generating prices by calculating costs and figuring in an acceptable profit is outdated and u...
Free Online Guide - Which digits to choose? How high should it be? Should it be rounded or precise? Plus other techniques.
Hidden AWS data transfer costs can lead to higher than expected cloud service bills. This post will help track hidden fees and show you how to control them.
Airfares fluctuate due to demand shocks and intertemporal variation in willingness to pay. I estimate a model of dynamic airline pricing accounting for both sources of price adjustments using flight-...
I joined Datadog as VP Finance back in 2015 when the company was still very small. Back then, the company had about 100 employees, was making around $20
Forking over another $5 a month is getting pretty old.
This week we teardown the pricing of Dollar Shave Club and Gillette. Will Dollar Shave Club win out by taking over the bathroom, or can Gillette fight back with over 100 years of brand awareness? We find out in this week's Pricing Page Teardown.
Driven by buyers' need for consistency and explanation, the most popular pricing method uses a surprisingly simple formula based on size.
The estate-sale industry is fragile and persistent in a way that doesn’t square with the story of the world as we have come to expect it.
Prospect theory proposes that when making decisions people use a reference point to frame prospective alternative outcomes as either potential gains or losses; when considering prospective gains, they are risk-averse and prefer certainty, but when considering prospective losses…
Profit desert customers — small, low-profit customers often numbering in the tens of thousands — are an important business segment in most companies. They often amount to about 50–80% of customers and consume about 40–60% of the company’s costs. In some companies, they’re…
It's all about setting up psychological tripping blocks
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The typical guess is much worse today than it was in the 1970s. It could be because people don't really need to keep track of prices anymore.
3-min marketing recommendations from the latest scientific research. Join 30,000+ marketers, for $0.
How much should one pay for a chip or a component? Lytica, a Canadian supply-chain pricing analytics company, has the answer. Founded by former Nortel chief procurement officer Ken Bradley, who, like many others in the IT industry, was once bemused by component pricing, Lytica…
Earlier this year, GitLab got rid of a paid starter offering, trimming its product catalog from 4 subscription tiers to 3 — here's why it makes sense.
In October 2020, Miami-based art collector Pablo Rodriguez-Fraile spent almost $67,000 on a 10-second video artwork that he could have watched for free online. Last week, he sold it for $6.6 million.
When the pandemic presented a buy-low opportunity, one college dropout hit the road and filled his truck with $200,000 worth of kicks.
There’s a reason that online ticket sellers hit you with those extra fees after you’ve picked your seats and are ready to click “buy.” Pure profit. A
A Veblen good is a type of luxury good, named after American economist Thorstein Veblen, for which the demand increases as the price increases, in apparent cont...
Let's talk about pricing commissioned work (on existing open source projects). Or: things I learned the hard way from past mistakes.
Burlington shut down online sales in March right before coronavirus lockdowns. But it's among the discount retailers that have endured the pandemic surprisingly well, even opening new stores.
Collectors fluent in catalogue symbology can see which lots are locked in, which might lead to surprising results, and how an entire auction is likely to go.