Traditionally, personal lines insurance has been priced using a cost-plus approach. This method focuses on the insurer making a desired margin, but can fail to maximize overall profitability by neglecting aspects of competitive positioning and important customer characteristics. This article outline some of the pricing tools that are available in...
Most companies fail to capture all of the opportunities for generating growth, profit, and competitive advantage through pricing. What's more, many companies do an especially poor job of managing pricing as they come out of an economic downturn. Pricing for the recovery is an opportunity they can't afford to miss....
Price is the only element of the marketing mix that brings in revenue and affects the organization’s profits. Utmost care should be taken by the management to formulate the pricing strategy. Several factors have to be kept in mind while doing so. The objectives of pricing include profit maximization and...
Zone pricing in wholesale gasoline markets is a contentious topic in the public policy debate. Refiners contend that they use zone pricing to be competitive with local rivals. Critics claim that zone pricing benefits the oil industry and harms consumers. With a controlled experiment, the paper investigates the competitive effects...
Industrial companies have more power to create value through pricing - including raising prices, even under present economic and competitive conditions - than many realize. This article discusses how the companies that focus their organizations on what is called precision pricing typically boost EBIT margins by three to five points,...
This article talks about the theory of contracting under asymmetric information. It focuses on three main principle of the theory such as: 1. It establish a competitive analog to the revelation principle which is known as an implementation principle. This principle provides a complete characterization of all incentive compatible, indirect...
Without thinking through the competitive implications of a proposed pricing strategy, the management team may not benefit from the development and implementation of a value based pricing strategy. This article addresses the components of a value-based approach, and provides guidelines for managing competitive dynamics. The context of the analysis provided...
The days of broadly averaged, one-size-fits-many pricing are over. New technologies are creating increasingly precise pricing tools to gather broader and deeper information about consumers and deliver customized pricing to individuals. Preparing for price-differentiated commerce is more than a matter of understanding and implementing the best tools. This article offers...
This white paper tells that frequently varying online prices in response to changing market conditions can maximize returns and create a potential new source of competitive advantage. The benefits of dynamic pricing are twofold. First, it provides new opportunities for companies to maximize their return per customer. Secondly, dynamic pricing...
Competitive rate intelligence provides the external benchmark to ensure a person's strategies are as sound in the marketplace as they are in the minds of the person's executives. ALM balance sheet modeling is the internal benchmark for evaluating the impact of pricing decisions on the balance sheet given various interest...
The pricing strategy has hardly been studied by market researchers from an empirical viewpoint. This paper analyse some of the external factors influencing the selection of a pricing strategy. Particularly we have analysed the pricing decisions made by companies according to the level of information available to the customer about...
Hoteliers and owners of commercial properties today face an increasingly competitive environment for the resale of telecommunication services to guests and tenants. This strategic planning paper describes several competitive strategies available to hoteliers and property owners when competing for telecom revenues. It assesses the competitive position of hoteliers and owners....
The Pricing Analyst job description template includes the following job summary: To review and analyze the company's product pricing compared to published or disclosed prices of competitors in the market place. To develop pricing options to meet competitive opportunities and provide input for profitability projections and corporate pricing strategy. Additional...
This paper examines the issue of price delegation versus centralized pricing in the context of a competitive market. Consistent with the past theoretical literature on price delegation, the contracting framework of agency theory is used. The firm designs and offers an optimal contract that will motivate the salesperson to work...
This paper is designed to help printers and bindery finishing companies deal effectively with the challenges of a changing and highly competitive market place. The authors hope this information is helpful, and that the reader will think kindly about DHA Systems when the time comes for him or her to...
Pricing is becoming more science than art. But because the science is complex, most managers rely heavily on art-or instinct. As a result, they almost always miss the pricing sweet spot. A powerful, fact-driven tool called the profit parabola can help managers monitor competitors' prices, learn how their pricing affects...
Jun. 18--Northwest Airlines came out swinging Tuesday in response to a lawsuit charging the Eagan-based carrier with anti-competitive pricing. Jun. 18--Northwest Airlines came out swinging Tuesday in response to a lawsuit charging the Eagan-based carrier with anti-competitive pricing.
The paper concludes that price moves are powerful shapers of company’s fortunes. Poor planning and “step-at-a-time” pricing actions can destroy strategies and sink profits. Successful managers take a long-term perspective for managing pricing competitive dynamics. The chess game analogy provides useful insight for profitably managing pricing. To implement a chess...
Pricing has traditionally played a tactical rather than a strategic role. Most companies based their prices on cost-plus considerations or competitive comparisons, not concrete strategic goals. But the role of pricing is rapidly changing. What drives this change? Many factors. The Internet, the pervasive emphasis on shareholder value, and the...
From the executive summary: ‘In the past, fixed-price or cost-plus pricing models were an adequate way to compensate outsourcers. However, today’s competitive marketplace offers CIOs new alternatives that add flexibility and agility to relationships. Indexed pricing, gain sharing, and capacity or utility pricing promise a stronger correlation between business results...
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