Tag Archives: pricing strategies

Pricing Is A Talent

In full disclosure, I am not a fan of Gogo Inflight Internet service. I am a fan of wi-fi equipped airplanes, and of being able to access the Internet and email in the air; just not of Gogo. However their … Continue reading

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Pricing for Profit

Substantial research and evidence exists to show that people are irrational about prices … and predictably irrational. Another study, this time in the hospitality industry, demonstrates this fact. Cornell University did a research study on menu pricing in restaurants. The¬†key … Continue reading

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Incremental sales should generate incremental profits

Above a breakeven point, adding customers and/or revenue even at a lower profit margin should result in increased profit to the bottom line. Once your so-called fixed costs are covered, as long as the marginal¬†cost of serving the customer is … Continue reading

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Is your price too low?

Pricing strategies are a challenge … especially in today’s hyper-competitive and transparent marketplace. Using price to induce trial is a subset of an overall pricing strategy. Many people believe that you can make an “offer they can’t refuse” to induce … Continue reading

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To bundle or unbundle: that is the question

Spirit Airlines announced yesterday they are going to charge for carry-on bags. Horrors, is nothing sacred? At first glance this approach might seem harsh. Or mercenary, or stupid. On further observation, maybe not. The goal of most air travelers is … Continue reading

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Similar pricing strategies disguised

Northwest Airlines implemented a premium pricing strategy for Coach seats by charging a fee (up to $25) for the more preferred Coach seats except for their most frequent flyers who get them for free. When first implemented, this fee was … Continue reading

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