Customers should easily understand pricing in one read

I know I’m not telling you anything you don’t know, and Product A is a work-in-progress in terms of sales and pricing, but you could never scale Product A to hundreds or thousands of customers if you have to do as much hand-holding as has been required for recent customers. This seems to indicate that the pricing scheme is not simple enough. – sp

Marketing Pricing The right price for parking is the lowest price you can charge and always have one or two spaces left to park. How is pricing strategy developed in the company?  What are the factors that affect pricing strategy? (a) cost-of-goods sold; (b) overhead; (c) competitors’ pricing; (d) past pricing trend; (e) customer sensitivity to price; (f) volume; (g) “market-will-bear” pricing  What has been the price trend for the past five years?  What is the price trend for the next five years?  Will price competition increase in the next five years?  Is there a price leader in the industry? If it’s not the company, why?  Do salespeople (and others) have the approval to sell products at a price that differs from the approved price list?  Are prices reviewed/adjusted each year?  Can cost increases generally be passed on to the customer?  Are we routinely using online comparative shopping systems to monitor and adjust our pricing relative to the competition?  Do we have a good understanding of how our customers react to price changes or discounting policies?  Have we correctly segmented our customers when it comes to pricing and discounting?  Do we provide our sales channels clear discounting guidelines and targets?  Do our sales people offer discounts outside of margin guidelines?  Can we quickly adapt to market changes to achieve short-term objectives without sacrificing margin or damaging long-term growth?  Do we have real-time visibility into profit performance by channel, product, and customer segment?  Are we able to quickly sense and respond to emerging opportunities and competitive threats as they arise?  Is our pricing and promotion strategy driven only by costs and competition, or more by our customers? in general: pros | www.vendavo.com | www.zilliant.com | price fixing | real-time pricing intelligence: blacklocus | revenue management: modeln categorical thinking: Does bundling products together undermine their value? lease pricing: What percentage of sales are leases?  What is the length of a typical lease?  What percentage are full payout leases?  Does the company have any third-party leasing agreements at present?  Are the company’s license agreements effective revenue generators? software: Can we demonstrate an immediate return on investment (ROI) for our software customers?  Can we track the success of our technology implementation?  Do we map the cost of our software to our customers' business needs in measurable ways?  Do we help customers justify software purchases internally?  Are our software contracts easier to understand than the competition's?  Do we offer more manageable terms that do not lock-in customers to outdated products?  Is our warranty and performance guarantee credible?  | digital licensing: www.protexis.com | recommend new software at install time: opencandy books and articles: Competitive Pricing: Harnessing the Power of the Waterfall Model Accenture | Customers Will Pay More for Less Chernev | Priceless: The Myth of Fair Value Poundstone | The Strategy and Tactics of Pricing Nagle Art | Customer | Supply Chain | Inflation | Buying

Keep it simple, stupid (KISS).

 

The Rise and Rise of Bitcoin

Will the rise of Bitcoin bring a monetary paradigm shift that will forever change the world?

Production & Utilization of Wealth/Money Currency and Exchange  search What has been the impact of the fluctuating value of the dollar on the company's import and export activities?  What protective measures does the company take against currency fluctuations?  What exploitive measures does the company take with respect to currency fluctuations? in general: calculators: www.x-rates.com | open source: opencoin | paper: fortresspaper | sending/receiving: stellar | trading: forex, www.fxall.com, www.oanda.com | virtual currencies: amazon coins, webmoney | Wolfson Economics Prize big idea bitcoin: about: FBI assessment | ATM |  buy/use/accept: coinbase | documentary: The Rise and Rise of Bitcoin Globalization | Financial | Risk | Inflation | Innovation | Intl | Monetization

DAVOS: World Economic Forum

Economic Theory and Systems Economic Theory: index of economic freedom Economic Systems Historical development of economic systems Capitalism Centrally-planned systems Appraising economic systems The Consumer and the Market Scarcity, utility, and value: behavioral economics: | Valuation Consumer behavior: Buying Decisions | inelasticity Markets: markets hate uncertainty | Randomness Price system in capitalist economies Organization of Production and Distribution Organization of the production of goods Marketing and Merchandising Inputs of the productive process Institutions that facilitate business formation, production, output Money Currency & Exchange Banks International: Bank for International Settlements BIS economic statistics business organization stock markets Agricultural economics International trade Government’s role in production & distribution Methods of business organization Advertising & Promotion Distribution of risk Consumer credit For a disciplined credit card user, the interest rate is essentially irrelevant because a credit-smart consumer pays off the most recent transactions with each monthly bill; i.e., you never carry an outstanding balance which is the most powerful way to build a solid credit rating.  If you want a rewards program with your card, then that generally requires an interest rate greater than 0% and the higher the interest rate, the better the rewards since interest income is what covers the cost of the rewards program for card issuers.  But as previously stated, if you are paying off the transactions each month and not carrying an outstanding balance, the high interest rate is irrelevant.  BOTTOM LINE: use a credit card for convenience, security (don’t have to carry alot of cash around), and to create a detailed transaction record,  but not as a loan! Distribution of Income and Wealth the rich get richer and the poor get poorer Matthew Effect Distribution by categories of the population: Forbes 400 | gini coefficient How government affects the distribution Capitalism Taxation Laffer Curve postulates that no tax revenue will be raised at the extreme tax rates of 0% and 100% and that there must be at least one rate where tax revenue would be a non-zero maximum. Poverty Macroeconomics National income and employment theory: misery index Intl. equilibrium and disequilibrium Business cycles Inflation and deflation Economic Growth and Planning Nature and causes of economic growth Planning for economic growth and stability Government Finance Growth books, forums, journals Stealth of Nations by Robert Neuwirth The Mystery of Capital by Hernando De Soto big ideas The Wealth of Nations by Adam Smith Wall Street Journal World Economic Forum Davos Globalization | Buying | Acquisitions | Economics | Human Rights | Issues |