Pricing your Product

Pricing a product (or service) is hard, and there’s no set way of doing it – but there are few things to bear in mind. Cost Plus Pricing If it costs you $100 to make a product, it might make sense to price it at, say $120 to give you a $20 margin. This does… Continue reading Pricing your Product

Finance Glossary for Dummies

Like technology, finance is an area replete with cool sounding words that no one outside finance understands. The dirty secret – they rarely mean anything complicated. So here’s a simple glossary of terms to help you understand what the hell finance people are talking about. Debt: Money that you owe to someone. Equity: Money that… Continue reading Finance Glossary for Dummies

Perception Of Pricing

Evil marketing at its finest: We all know that price promotions usually give an uptick in sales, but it doesn’t matter whether you’re actually cutting price – it only matters whether customers think you’re cutting price. Case in point: GM’s “Employee Discount” pricing, launched on 2005, turned out to be hugely successful for the company… Continue reading Perception Of Pricing

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Segmentation Or Identity

When marketing a product, it’s generally a good idea to split up the market so you can understand more clearly who you’re targeting, and who you’re not. Segmentation The common way of doing this is by segmentation. For example, Ikea normally aims its products at people aged around 30 (among other things) – that’s a… Continue reading Segmentation Or Identity

Professor Tedlow at the Computer History Museum

Learning about the birth of the IBM S/360 while at the Computer History Museum is like eating chocolate biscuits wrapped in chocolate as far as I’m concerned. Last week I tasted the goodness. What’s the System/360? Back in the day, you bought a computer and programmed for that computer alone. If you bought another one,… Continue reading Professor Tedlow at the Computer History Museum

Grey Poupon Case Study

Ever heard of Grey Poupon? I hadn’t. It turns out that it’s a premium mustard. Here’s an old ad – this, of course, is the British version. As you can see, the ad screams premium branding, and the American version is no different. It’s a good ad – a touch of light comedy, and it… Continue reading Grey Poupon Case Study

Value Based Pricing

We received a talk on pricing this evening which I thought was a great illustration. I present it here for your delight. Yep – this post contains pricing theory and fertiliser. Please keep reading? It’s lonely out here, but maybe I should stop mowping Nobody likes a grass Your company, Freddy’s Fertiliser, produces regular fertiliser… Continue reading Value Based Pricing

The Power Game

In last week’s Managerial Leadership class, we played a fascinating game directed by Professor Buck. Here’s how to play. Ingredients: 30 or more managers, one dollar each Time to cook: 30 mins Instructions: Take one dollar from each of the managers. Segment out the managers. Make a random 3 top management, a random few middle… Continue reading The Power Game