Anyone that has ever shopped for the best airline ticket prices and is flexible on their travel dates knows that flights are cheaper on Tuesday through Thursday and higher on Monday and Friday. Since most business people travel on Mondays and Fridays demand for these seats is high, driving up per seat prices. Since flights […]
Pricing Strategies – Pricing by The Day Of The Week Read More »
Businesses that have inventory often have a seasonality to their sales. Holding unsold inventory for a year to wait for the next peak season ties up valuable capital. Savvy business owners mark up prices when demand is high and steeply discount merchandise at the end of the season to convert surplus inventory into cash. For
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It is my experience that no two people pay the same price when they book an airline ticket. The list price for an airline seat varies depending on the number of seats already sold and the closeness of the purchase date to the departure date. If an airline fears that a flight will have too
Pricing Strategies – Pricing by Units Available Read More »
As a way to obtain new customers you can offer your product or services at a price that is less than your direct cost. Cell phone companies offer new phones for less than the actual cost of the phone in exchange for an extended contract. Razors are often sold at a loss based on the
Pricing Strategies – Loss Leader Read More »
Once you know the minimum price you can accept to meet or exceed your breakeven, you are ready to price your products or services to achieve strategic business objectives. Pricing your product or service properly is one of the most overlooked marketing strategies you can employ to achieve the business results you desire. Over the
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New disruptive inventions don’t only affect manufacturers like our button manufacturer in yesterday’s post. Sometimes technology affects service businesses as well. Let’s consider the safety razor and the impact it had on the barber industry. While Jean-Jacques Perret invented the safety razor in France during the latter part of the 18th century, the invention reached
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Several years ago I attended a presentation by Daniel Burris, the author of the book “Techno-Trends.” The opening line of a presentation that still resonates in my head to this day is “The future is already invented”. After a long pause to allow the line to sink in, Mr. Burris began talking about technology life
Is Your Business On A Path To Extinction? Read More »
Many new business owners make several formation errors during and after the registration process that can come back and bite them later. 1, One common formation error is that the registering agent fails to include an entity identifier in the name, such as LLC or Inc. 2, Once registered, many LLCs fail to produce an operating
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A business associate of mine once used to charge $5,000 per day for his consulting services. I asked him once how he came to that rate and he said he heard someone was charging $4,000 per day and he wanted to be sure he was the most expensive option available. At the time he billed
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In behavioral economics, we never want to lose our options. We often keep our doors open even if we never have any intention to go back through them. It is our often irrational fear that once we close the door we’ll have the need to get back that prevents us from moving forward in a constructive way.
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