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Recent Articles from Pricing Experts
Netflix’s Clever Price Framing Will Ring The Register On Ad-Supported Plan
Authors: Robert Ribciuc On November 3, Netflix launched a new lower-priced, ad-supported pricing level, which, according to the author, gives the company significantly more attractive economics than they previously had with just the basic and premium plans. Additionally, behavioral economics biases (such as availability bias, framing, etc.) line up to promote the adoption of this new pricing level, as the author explains. Robert Ribciuc, CPP, CFA, is the Managing Partner of EBITDA Catalyst, a boutique advisory firm specializing in pricing strategy, analytics, and execution. His experience includes consumer brands, SaaS/software companies, and PE firms whose portfolio companies have monetization, pricing, [...]
3 Key Themes from the PPS Fall Conference
In this article, the author outlines 3 overarching themes the were key takeaways at the recent PPS Fall Pricing Conference and Workshops in San Francisco. This year’s fall conference focused on the theme of “Solving the Pricing Puzzle,” and, from the discourse of more than 300 pricing leaders, author Tracy Dent identified several opportunities for pricing to lead the charge amidst the current challenges of inflation and recession that all pricers are facing across industries and markets.
Inflation and Recession: The Commercial Impact
Did you find the last two year’s negotiations tough? Then brace yourself for the next round. So far, the direction has been clear: prices needed to increase to absorb the costs of disruptions in global supply chains. Guarantee of supply was the most important value-driver for many customers, which meant that sellers could successfully pass on their cost increases. However, as a second wave of cost increases has hit the markets in the form of rising energy costs, and as consumers are demanding higher wages as a result, a wage-price spiral is beginning to take shape. This means high inflation rates will be with us for some time and companies should prepare their commercial strategy accordingly.
Demystifying Pricing Algorithms Using Artificial Intelligence and Machine Learning
In this article, the authors explore Artificial Intelligence, Machine Learning and Algorithms, show real examples of applications in the world of Pricing and Revenue Management, and examine the benefits, challenges, and points of caution to consider when using these “new” technologies.
Pricing Missives
In the currently unpredictable, post-COVID, inflation-plagued economy, companies are being tested on their pricing strategies and their pricing decision-making “spine.” In this article, the author analyzes recent pricing decisions by six organizations in diverse industries and outlines the potential strengths and weaknesses of each pricing approach.
Costco Prices: Bargains, Brilliance, and Brand Consistency
Understanding Costco’s messaging code embedded in its price point endings can be dramatically useful for consumers looking for bargains and further inflation-fighting opportunities. For pricers and marketers, it invites admiration and respect for a brand that is immensely successful because it thinks the details through, as the author explains.