When business is good and demand is high, it is tempting for businesses to raise prices. However, customers have long memories and emotional responses to prices, and short-term increases can affect long-term business. In this article, the author explores the emotional responses that customers have regarding prices and outlines steps that businesses can take to squelch the emotions brought on by high prices.
Freemium models (free + premium) are pricing strategies that combine a basic free version of a service with a more functional, robust premium (paid) version. The goal of freemium models is to use the free price to attract the largest number of potential customers in the hopes that they will become comfortable enough with the basic functionality and develop a desire for the more powerful premium version. In this article, the author explores freemium models and how they can be successful.
In today’s internet driven markets, price transparency is an important topic for pricers. Many fear pricing transparency and see it as a threat to pricing power and margins. However, as this article explains, if you treat greater price transparency as a resource rather than a risk, you can find new opportunities to sharpen your value proposition and your segmentation.