Decoy pricing is a strategy where a business introduces a third price/product option, purposely chosen because it is not meant to sell well, but rather to make another of the options look like a much better deal. Instead of offering just two choices, a business adds a...
I recall an anecdote from back in the days of Yellow Pages (YP) advertising. There was a pizza restaurant in New York City who ran a full-page ad encouraging customers to tear the adjacent full-page ad of their competitor out of the YP and bring it into the...
Cost-Plus Pricing, also known as markup pricing, is a pricing strategy where a company determines the selling price of a product or service by adding a fixed percentage (the markup) to total costs. This strategy is straightforward and ensures the company covers its...
If you’ve ever visited a store to purchase a heavily discounted product and picked up a few other items ‘while you were at it’, you’ve likely succumbed to a loss leader pricing and product strategy. A loss leader strategy involves selling a product or service at a low...
In today’s dynamic marketplace ‘sustainable competitive advantage’ is often considered a myth largely because, in this rapidly changing business landscape, it’s nearly impossible to maintain a single, long-term advantage due to factors like technological disruption,...
