A Curious Case of Christmas Tree Pricing

Posted by Adele Mclean on Dec 27, 2018 6:30:00 AM

O Tannenbaum, O Tannenbaum how lovely are your branches.

O Tannenbaum, O Tannenbaum how can you price stay stable.
Read More

Topics: Pricing with Confidence

Dynamic Pricing – Do Your Customers Own Your Pricing Strategy?

Posted by Richard Harrington on Dec 18, 2018 3:41:38 PM

Dynamic pricing is a hot topic right now. With the advent of big data and IT quoting systems, many businesses are excited at the prospect of charging each customer at their willingness to pay for their product, rather than a flat or segmented price. As Bob Crandall, former CEO of American Airlines once put it “If I have 2,000 customers on a given route and 400 prices, I’m obviously short 1,600 prices." Think of all that money you’ve been leaving on the table with regular segmentation; if you could grab that, your profits would go through the roof!

Read More

Topics: Pricing with Confidence

How To: Stakeholder Assessment

Posted by Travis Umpleby on Dec 18, 2018 3:41:22 PM

Are you planning a price increase? Learn from Travis Umpleby via his video below on how to use one simple tool to conduct a stakeholder assessment and help your increase stick.

Read More

Topics: Pricing with Confidence

News from the Field: Key Questions to Address Price Leakage

Posted by Pete Morelli on Sep 18, 2018 10:13:26 AM

One of our top goals in any client engagement is uncovering revenue and profit growth opportunities.  Recently, we worked with a global technology manufacturer to answer four key questions:

Read More

Topics: Pricing with Confidence

Go Beyond the Spreadsheet to a New Customer Value Conversation

Posted by Ellen Quackenbush on Sep 13, 2018 9:43:39 AM

Recent articles and blog postings are abuzz with the power of price segmentation, driven by the abundance of transaction data and the power of pricing analytics to create highly-tuned segmentations to capture customer willingness-to-pay. Some analytics create hundreds—even thousands—of micro-segments to maximize profitability by exploiting the differences in willingness-to-pay within your installed base. What’s not to like about this? Sounds like easy money to me. However, there are some embedded assumptions about price segmentation that pricing professionals need to consider:

Read More

Topics: Pricing with Confidence

Do You Live or Die on Your Ability to Get Price? 3 Essential Tips to Improve your Commercial Strategy

Posted by Richard Harrington on Aug 15, 2018 9:38:49 PM

At a recent networking event, I was chatting with a pricing manager from a major company famed for their innovation. She made a comment that really struck me:

Read More

Topics: Pricing with Confidence

Ask the Expert: GM Survey Report Commentary

Posted by Erin Cihak on Aug 8, 2018 7:28:11 PM

At Holden Advisors, we often speak with General Managers (GMs) about commercial transformation. We want to understand not only what is happening in their markets and their businesses, but also the effectiveness of their commercial teams. Recently, we asked GMs a specific question about pricing: “How can Pricing Leaders elevate the impact of their function and better serve their companies in the creation and execution of overall corporate strategy?”

Read More

Topics: Pricing with Confidence

Report: 2018 GM Survey

Posted by Patrick McCullough on Aug 6, 2018 12:36:16 PM

Holden Advisors works with General Managers to improve the commercial performance of their businesses. Throughout the course of our work, we have identified a disconnect between the vision for and the reality of pricing functions within many organizations. Given the dynamics at play in these markets, and how customers are functionally served within them, it is no surprise a clear contradiction has emerged. As a result, we conducted a survey to validate our findings. Over the course of our research, we asked GMs to reflect on the pricing function within their teams and define their wants and needs for the pricing discipline. For the first question, we asked GMs to describe their ideal vision for the pricing function. Then, we asked them to compare and contrast this vision to the current reality. The responses were grouped into the three distinct categories defined below. Here is what we learned:

 

Read More

Topics: Pricing with Confidence

Is elasticity the best tool in your arsenal? Not always

Posted by Richard Harrington on Jun 20, 2018 1:36:10 PM

When deciding on the price to charge in the market, many companies look to price elasticity— how the volume sold changes with the price charged to work towards what they hope will be a profit maximizing price.

Read More

Topics: Pricing with Confidence

Metromile Takes Page from GE Pricing Playbook to Disrupt Auto Insurance Market

Posted by Pete Morelli on Jun 1, 2018 4:40:52 PM

In Pricing with Confidence, Reed Holden described the profit power of choosing the right, and sometimes innovative, pricing model. A stellar example of innovative pricing is when GE disrupted the market for aircraft engines.  They introduced “Power by the Hour” which allowed airlines to pay for engine flight hours rather than allocating large capital sums to purchase engines up front. This innovation changed nothing about the high performance GE90 engines, but aligned with how airlines conducted business and reduced adoption risk by giving customers a predictable cost for what would otherwise be a large capital expense.

Read More

Topics: Pricing with Confidence