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It appears Covid-19 will be with us for months. If a business can’t hang on at restricted capacity with current prices, they must increase their prices. They have nothing to lose and everything to gain.
With service capacity limited by social distance rules and regulations, demand is likely to exceed supply for many businesses. The best way to allocate that limited supply is with prices. It is also a way to help your business survive. You may have to lower them in the future, but it is ok to increase prices now.
As our economy starts to reopen from the Covid-19 shutdown, some industries will initially see demand exceed supply. That could be an opportunity to raise prices. Other businesses may not be as lucky, but all reopening businesses should rethink their pricing strategies and consider some options.
Covid-19 is causing many changes, including how price-sensitive your customers are. There are things you can do to prepare for the changing price sensitivity.
In recessions, pricing advice usually includes use your analytics, focus on value, and resist lowering prices. However, when your near-term viability is at stake, consider some pricing strategies for survival.
The National Football League has long been a business that segments its customers and attempts to value price. The players also try to value price their own services to the league, but there are limits. The current CBA negotiations provide an interesting test of players’ ability to value price.
Too often firms become enamored with creating cool charts and miss the point of turning data into actionable insight. It is worth revisiting some tips to make your pricing analytics more helpful. To be useful to your organization, it is important to have a thoughtful, comprehensive approach to your measurement process.
One of the most common requests we receive is to help a client select or revise a pricing strategy. It is a simple question, but to answer it, we need to understand a lot more about the business. A pricing strategy should not be picked randomly or because someone read about it being successful elsewhere. […]
Many of us make New Year’s resolutions with great intentions, but perhaps miss carrying out some of them. Even if you made great progress this year, we hope you will join us in making and sticking to these resolutions.
I resolve to:
1. Set prices according to the value we bring to customers, not according to my costs.
Recently through a series of misadventures, I bent one of the bolts that keep my car’s Brembo brake calipers in place. I could not find the specific replacement part nearby, so I borrowed one that is ¼” shorter and, with some adjustments, I was able to make it work as a temporary solution. When I […]