Quotes About Pricing

It is very difficult for a company whose cost structure is tailored to compete in high-end markets to be profitable in low-end markets as well.

hedonic regression analysis expresses the total price of a product as the sum of individual so-called shadow prices (some positive, others negative) that the market places on each of the product's characteristics

the innovator's dilemma: Should we invest to protect the least profitable end of our business, so that we can retain our least loyal, most price-sensitive customers? Or should we invest to strengthen our position in the most profitable tiers of our business, with customers who reward us with premium prices for better products?

products offering competitively superior shock resistance and mean time between failure (MTBF) were accorded a significant price premium, compared to competitive offerings.

innovator's dilemma: Should we invest to protect the least profitable end of our business, so that we can retain our least loyal, most price-sensitive customers? Or should we invest to strengthen our position in the most profitable tiers of our business, with customers who reward us with premium prices for better products?

Instead of drilling down and finding ways to creatively meet the target cost as Ford did, if companies give in to the tempting route of either bumping up the strategic price or cutting back on utility, they are not on the path to lucrative blue waters.

the strategic price you set for your offering must not only attract buyers in large numbers but also help you to retain them.

The cost side of a company's business model ensures that it creates a leap in value for itself in the form of profit—that is, the price of the offering minus the cost of production. It is the combination of exceptional utility, strategic pricing, and target costing that allows companies to achieve value innovation—a

The key here is not to pursue pricing against the competition within an industry but rather to pursue pricing against substitutes and alternatives across industries and nonindustries.

Identify where the mass of target buyers is and what prices these buyers are prepared to pay for the products and services they currently use.

At the same time, by eliminating many of the most costly elements of the circus, it dramatically reduced its cost structure, achieving both differentiation and low cost. Cirque strategically priced its tickets against those of the theater, lifting the price point of the circus industry by several multiples while still pricing its productions to capture the mass of adult customers, who were used to theater prices.

When exceptional utility is combined with strategic pricing, imitation is discouraged.

If companies give in to the tempting route of either bumping up the strategic price or cutting back on utility, they are not on the path to lucrative blue waters.

Find the right price for an irresistible offer, which, by the way, isn't necessarily the lower price.

Investors covet past improvements but also always believe pricing unimaginable future creativity and efficiency gains is Pollyannaish. And they're always wrong. Bet on it.

If the E.U. allows itself to be priced out of the world economy, the next generation will not get jobs, living standards will decline, and the Union will lose the popular consent of the people of Europe.

If Americans could legally access prescription drugs outside the United States, then drug companies would be forced to re-evaluate their pricing strategy.

It's counterproductive to lower my price, because I have to sell more units to make up for that lost revenue. Generating brand-new products can take a long time. Improving service is typically the quickest way that I can take market share. So aligning technology strategy to better service customers becomes an essential path to revenue growth.

high fashion has little to do with what women wear and a lot to do with what retailers mark down later.

Americans pay up to 1,000 percent more to fill their prescriptions than consumers in other countries - that is an alarming statistic.

I don't understand how it's cheaper to buy a whole steak at the Price Club than spinach. How did that happen?

When similar products are on store shelves, price competition is inevitable. Nintendo has been trying to steer clear of that direction and create a market of our own.

At Disneyland they charge you as an adult when you're ten.

There's no question that consumers are looking for value today.