Thursday, 22 January 2009

Some pricing notes

We visit an interesting blog called Pricing for profit.

Two notes that i wanted to link here are :
1. Foru pricing strategies in a recessionary environment. Our caution to this is simply that this would apply to a wide range of products, we would not advice premium brands to follow any of these suggestions.

Rebates/ volume discounts/ free gifts etc work to increase volumes without lowering the value proposition for most mass market goods. But anything given free once sets up the expectation of future offers.

In a mass market product, the frequency of purchase and the price of the product help to mitigate these expectations. Not so for premium products.


2. The second note is on a bit of research that "A Beautiful Woman Can Affect Men's Pricing Decisions"

This has interesting applications especially for the personal loan business. But perhaps would not apply as well in markets with more easily available information.

ritu and venkat

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