Increasing Consumer Prices? Proceed with Care
November 28, 2011
Business leaders don’t have to look very far to see
consumer outrage at companies like Netflix and
Bank of America for inadvisably boosting prices and
adding new fees. Before increasing prices,
companies would be well served by taking the time
and care needed to understand which customers
value which products and services, their price
sensitivity especially given the current economic
conditions, and the competitive landscape.
The Netflix strategy to raise prices – to the tune of 20 to 60 percent across the board – was under the guise of continuing its DVD delivery service while it invested in building its media library and delivery services. In the company’s explanation of its new business model – separating streaming content (Netflix) and DVD delivery (Qwikster) – it proposed that customers would prefer to buy services a la carte. So rather than continuing to charge an extra $2 per-month add-on for DVD delivery, Netflix opted to charge for the delivery methods separately. Outside observers believe that insufficient research was done to determine perceived customer value and valid price points for service offerings.
GE Aviation Successfully Implements Vistaar Pricing Management Solution
October 17, 2011
GE Aviation, an operating unit of GE, is a world-leading provider of jet and turboprop engines, components and integrated systems for commercial, military, business and general aviation aircraft. GE Aviation recently announced that is is using Vistaar to manage and do scenario planning for its product price catalogs.
“Over the past several months, we have transformed spare parts catalog pricing from an art into a science using the Vistaar solution,” said Darren Huxol, marketing leader with GE Aviation. “We now have visibility into previously hidden data which is enabling us to develop and implement better pricing strategies. We anticipate expanding our Vistaar implementation to include additional product lines based on the success we’ve had with our first major catalog project.”
PPS 7th Annual Conference for European and Global Pricing
November 30 - December 2
"Market leading executives are acknowledging the positive impact that effective pricing strategies can have on their bottom line profits. The PPS (Professional Pricing Society) conference in Barcelona provides a valuable forum for pricing, marketing and sales professionals to share best practices and learn more about the science of pricing. Vistaar is pleased to continue its sponsorship of PPS and work collaboratively with our customers to learn more about the latest developments in the pricing industry," stated Venky Subramanian, vice president Vistaar Europe.
If you are attending the Barcelona event, please drop by Vistaar's booth (#1) and meet the European team.
Evaluate Your Pricing Maturity
November 28, 2011
How pricing savvy is your company? Just a one percent increase in revenue can lead to more than a 10% improvement in profitability. Take advantage of the Vistaar PriceCheck survey to determine where your company stands on the maturity curve.
Vistaar-PPS Co-hosted Webinar Available On-demand
If you missed "Powering the End Game with Real-time Advanced Analytics" webinar by David Glenn, PhD, senior director of Vistaar's Optimization Group, and co-hosted by the Professional Pricing Society, now is the time to catch up.
Glenn outlines how to extract more information about customers' willingness-to-pay, deliver that information to the right decision makers at the right time, and enable them to quickly find the best alternatives from a comprehensive set of scenarios.
Vistaar-Pricing Solutions Webinar Available On-demand
If you missed "Levers to Achieve World-class Pricing" by Jim
Saunders, practice leader with Pricing Solutions, you can view
Saunders draws from his extensive experience in pricing
management to talk about strategies and actions companies
can use to achieve pricing excellence.