Archive for the ‘Pricing Strategy’ Category

3 January 2011

Pricing Series: the Winner’s Curse

Statistically, any winning bid is likely to be cursed, unprofitable in the end, if there are many bidders participating. The best way to avoid the Winner’s Curse is to be selective in your bidding practice. You should also add a contingency factor to your bid estimate; you may not win as many bids, but you will be less likely to feel cursed in the end.

Posted by: Tamboura Gaskins at 12:50 pm | Category: Pricing Strategy | 10 Comments »

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21 January 2010

Pricing Series: Cost up? But what’s the true value?

To uncover the true value of your products, begin by doing a little research…right, I know, who has time to do research? I think that you do, and you will want to, especially when you remember that a percentage price increase is more valuable than the same percentage cost reduction when determining bottom-line profit.

Posted by: Tamboura Gaskins at 3:07 pm | Category: Pricing Strategy | 2 Comments »

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3 January 2010

Pricing Series: Unique Selling Proposition

If you and your competitors offer the same product or service and the only differentiating factor is price, it is only a matter of time before competition drives prices lower and lower, essentially down to pennies above what it costs you to produce the good or service. The best way to avoid a price war such as this is to differentiate what you’re selling from what your competition is selling in a way that encourages your customers to choose your product or service over your competitors’. One way to differentiate your product or service from that of the competition is to develop and communicate a unique selling proposition or USP.

Posted by: Tamboura Gaskins at 8:28 am | Category: Pricing Strategy | 1 Comment »

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