In “The scourge of ‘stealthflation’ – Companies have found sneaky ways to raise prices. Where will it end?” The Economist aired a litany of egregious ways in which companies try to foist higher prices on consumers. Some of the violations appear to result from insufficient competition in the marketplace. Some of the violations come from […]
Convoluted Carpool Lanes Carpool lanes started as a simple energy-conservation and pollution-reducing incentive: multiple people riding in a car get access to a special lane that typically moves faster than other lanes of traffic. Over time, transportation agencies and regional governments have piled on a range of goodies into these lanes. Electric vehicles and hybrids […]
A friend with a healthcare startup discussed pricing strategy with me after reviewing Y Combinator’s Kevin Hale in the video “Startup Pricing 101.” My friend learned that setting prices too low can hurt a startup by undermining the brand and perceived value for the early adopters critical to young startups. Revisiting Past Insights on Pricing […]
Inflation has been a hot topic in the pandemic economy. Beyond base effects (the artificially low prices produced by a shutdown economy), in many industries the prices for materials, goods, and even labor have soared. Suddenly, businesses need solid pricing strategies not only to earn attractive profits but also just to stay solvent. Marketplace recently […]
I prefer soaps with no additives, scents or other assorted chemicals. Accordingly, I have purchased Tom’s of Maine natural soaps for almost 20 years after a dermatologist introduced me to this friend of sensitive of skin. The soap is a bit expensive and sometimes hard to find. So when I find a reliable source, I […]
The topic of pricing is one of my favorite on this blog. Over the years, I have developed a keen sense of pricing dynamics. So when I find (apparent) pricing anomalies, I feel compelled to talk about and explain them. I made a quick 2019 New Year’s Eve run to Target and decided to take […]
Over three years ago, I wrote “Not Worth the Cost: A 17-Month Case Study of Congestion Pricing in the SF Bay Area” as an analysis of congestion pricing on the Express Lane for Highway 237 in Milpitas, CA. I concluded then that the opportunity for saving time was not worth the price of the toll […]
I have several beefs with Uber and its ilk. One beef I do NOT share with some is the controversy over Uber’s surge pricing. Surge pricing sounds exotic, but the pricing process is relatively basic in operation and in principle. It comes from the economics of bringing supply and demand into balance when demand surges […]
On November 29, 2013, I wrote a piece titled “Not Worth the Cost: A 17-Month Case Study of Congestion Pricing in the SF Bay Area.” In that piece, I presented data I manually collected on toll costs for the westbound Express Lane on Highway 237 (running from Milpitas to Sunnyvale, CA) versus the drive time […]
On March 20, 2012, the Valley Transportation Authority (VTA) implemented congestion (or dynamic) pricing on a critical San Francisco Bay Area thoroughfare called Highway 237 that primarily connects commuters from the East Bay to the South Bay. This change converted an existing car pool lane into an “Express Lane” which now allows solo drivers access […]
