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Gasoline, And Why You Should Always Let Customers Pay More

We get so hung up on customers focussed on price that we make an expensive mistake. Premium gasoline shows why we always need to let customers pay more.
Related Material   We get so hung up on customers that are focussed on price that we make an expensive mistake – we forget about those willing to spend more. Premium gasoline… http://beyondcostplus.com/blog/gasoline-and-why-should-always-let-customers-pay-more/

Pricing Lessons From MLB Tickets

Being honest about how fans value different games helps baseball teams sell more tickets at greater profits (and recover money otherwise lost to scalpers).
  Being honest about how fans value different games helps baseball teams sell more tickets at greater profits (and recover money otherwise lost to scalpers).   Not that long… http://beyondcostplus.com/blog/pricing-lessons-mlb-tickets/

If Costs Determine Price Why Do E-Books Cost More?

The traditional cost-plus approach to pricing dictates that price is a function of cost. So why are e-books (no printing, binding. etc.) more expensive?
  The traditional cost-plus approach to pricing dictates that price is a function of cost. So why are e-books (no printing, binding. etc.) more expensive?   If you are an… http://beyondcostplus.com/blog/if-costs-determine-price-why-do-e-books-cost-more/

Eggs & The Power Of Attributes

Eggs illustrate how attributes can be used to stream buyers and price according to their willingness to pay rather than the actual cost of production.
  Eggs illustrate how attributes can be used to stream buyers and price according to their willingness to pay rather than the actual cost of production.   Take a look at… http://beyondcostplus.com/blog/eggs-power-attributes/

Tesla Doesn't Price Based On Costs & Neither Should You

By charging different prices for the same battery Tesla illustrates that a cost-plus formula is much less important than a willingness to pay.
  By charging different prices for the same battery Tesla illustrates that a cost-plus formula is much less important than a willingness to pay.   The new Tesla entry level… http://beyondcostplus.com/blog/tesla-doesnt-price-based-costs-neither-should-you/

Costco/Amazon Prime Model Taken To The Extreme

This real life example shows how far you can take a pricing model similar to that used by Costco and Amazon Prime. Can florists do the same?
  This real life example shows how far you can take a pricing model similar to that used by Costco and Amazon Prime. Can florists do the same?   Coscto and Amazon Prime… http://beyondcostplus.com/blog/costcoamazon-prime-model-taken-extreme/

More Money For Less Car? It Depends On What You Value

Why would a car that has been stripped of features like air conditioning, sound system and floor mats sell for more money even though it costs less to make?
  Why would a car that has been stripped of features like air conditioning, sound system and floor mats sell for more money even though it costs less to make?   In the… http://beyondcostplus.com/blog/more-money-less-car-it-depends-what-you-value/

Small Price Difference, Relatively Large Performance Difference

Different buyers mean different approaches, and price-sensitive customers need to be handled differently when pricing premium versions.
Related Material   Different buyers mean different approaches, and price-sensitive customers need to be handled differently when pricing premium versions.   Last week a post… http://beyondcostplus.com/blog/small-price-difference-relatively-large-performance-difference/

Large Difference In Price For A Small Difference in Performance

Smart pricing lets customers that place a high value on a product spend more - if a customer wants to spend more good pricing lets them do just that.
Related Material   Smart pricing lets customers that place a high value on a product spend more - if a customer wants to spend more good pricing lets them do just that.  … http://beyondcostplus.com/blog/large-difference-price-small-difference-performance/

Differential Pricing Example – DVDs

Popular movies are released on digital media in a bewildering number of versions and formats in a great example of differential pricing.
Differential Pricing Example – DVDs Popular movies are released on digital media in a bewildering number of versions and formats in a great example of differential pricing.  … http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/differential-pricing-example-dvds/

Price Discrimination vs Differential Pricing

The terms Price Discrimination and Differential Pricing are sometimes used interchangeably, and there can be some overlap, but there are some important differences as well.
Price Discrimination vs Differential Pricing They were just feet away from each other, but they were directed at two completely different kinds of buyers. The more expensive one… http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/price-discrimination-vs-differential-pricing/

Cheap Tuesdays – A Great Self-Propagating Hurdle

"Cheap Tuesdays" at the movies are a great example of a self-propagating pricing hurdle – one that has the effect of making itself even more effective.
"Cheap Tuesdays" at the movies are a great example of a self-propagating pricing hurdle – one that has the effect of making itself even more effective.   The tradition of… http://beyondcostplus.com/blog/cheap-tuesdays-great-self-propagating-hurdle/

Hurdles & Price Discrimination – New Content

New content explaining the concept of hurdles and their place in a comprehensive differential pricing/price discrimination strategy has been added.
New content explaining the concept of hurdles and their important place in a comprehensive differential pricing/price discrimination strategy has been added.   One of the… http://beyondcostplus.com/blog/hurdles-price-discrimination-new-content/

Using Product Color As A Hurdle To Segment Buyers

Color can be used as a hurdle to identify buyers focussed on price, discount to them exclusively, while not discounting to those less concerned with price.
Thermoworks makes a highly regarded digital kitchen thermometer. The utility of their product (waterproof, accurate, instant) is widely respected. It is a great product that… http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/color-hurdle-price-discrimination/

New Customers Through Selective Discounting With Hurdles

Though sometimes discouraged discounting, done selectively using hurdles, can increase sales & profits by motivating new and/or price sensitive buyers.
Related Material In the flower business discounting is often discouraged. But, used properly, discounts are an excellent way to motivate price sensitive retail customers into… http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/new-customers-through-selective-discounting-hurdles/

A More Profitable Way To Quote Weddings and Events

A new way to quote weddings and events that results in more sales and larger profits by self-streaming customers according to how they value your product.
A new way to quote weddings and events that results in more sales and larger profits by self-streaming customers according to how they value your product. Beyond Cost Plus: A More… http://beyondcostplus.com/pricing-programs/quoting-weddings-and-events/

Cheap Tuesdays – A Self-Propagating Hurdle

Color can be used as a hurdle to identify buyers focussed on price, discount to them exclusively, while not discounting to those less concerned with price.
Related Material Cheap Tuesdays – A Self-Propagating Hurdle The tradition of "Cheap Tuesdays" at the movies is self-propagating pricing hurdle – one that makes itself more… http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/self-propagating-pricing-hurdles/

Virtual Haggling Over a Hotel Suite

Everyone expects a car dealer to make offers and counteroffers as they read your responses. The same thing now happens online when booking a hotel room.
As you can see they suggest two upgraded rooms: 2 Double Beds Executive Floor This upgraded room is priced at $169, a $30 premium over the standard room rate of $139. 1… http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/virtual-haggling-over-price/

Same Product, Same Store, Different Prices = More Sales

How a retailer offers identical products at very different prices, just feet away from each other inside the same store, to efficiently allow customers to segregate themselves and increase sales.
A new example just added to the resources section shows an interesting real world example of a retailer offering identical products at different prices... just feet away from each… http://beyondcostplus.com/blog/same-product-same-store-different-prices-more-sales/

In-Room Internet Access at Hotels

Hotels employ some advanced techniques when pricing in-room internet access - but are they being too greedy?
It is easy to dismiss the prices some hotels charge for in-room internet access as simply being too high but there are actually a number of advanced pricing strategies being… http://beyondcostplus.com/blog/room-internet-access-hotels/

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