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 […]
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 […]
Source: Steve Jurvetson – Flickr: Bezos’ Iconic Laugh, CC BY 2.0 Jeff Bezos is known as the founder and CEO of Amazon.com (AMZN). The stock for his company is toying with the $1000 level for the first time ever and is close to pushing Bezos past Bill Gates as the world’s richest man. Source: FreeStockCharts.com […]
My wife recently relayed to me an odd story told to her by a car rental agent. This agent told my wife about a woman who for months has rented the same Escalade over and over, renewing her rental agreement for a few weeks at a time. Escalades are considered premium/luxury rentals, so the bill […]
I intended to write a detailed examination of Amazon’s pricing problem with e-books. However after doing just a little research, I found there are plenty of people who have already provided excellent opinions and recommendations. So, instead of providing my classic unsolicited advice, I am posting links to the two most insightful pieces I found […]
On the same day that BusinessWeek lauded Subway for the success of its discount $5 footlong sandwiches, the National Franchise Association (NFA) sued Burger King Corporation over the legality of requiring franchisees to charge no more than $1 for the Double Cheeseburger. The Subway success story features a pricing strategy built from the bottom where […]
Subway’s $5 footlong promotion has become a nationwide hit. In “The Accidental Hero,” BusinessWeek writer Matthew Boyle describes how the promotion grew from just a few franchises in Florida to become a top-10 fast-food brand this year. The story demonstrates how a small, local idea can become a nationwide success. The story also powerfully displays […]
On Monday, the Atlanta-Journal Constitution reported that the state of Georgia is considering scrapping its annual sales tax holiday due to budget issues. One legislator expressed his support for the program by claiming: “‘It’s one of those things that spurs people to spend money that they may not otherwise spend. It goes directly to citizens […]
