Gray Marketing, adj+n
Usually blamed on others when the reality is when your products are gray marketed it is entirely your fault for not remedying it, monitoring it, but mainly for allowing the opportunity for it to exist in the first place.
Paul’s Pricing Dictionary: Transfarency
March 4, 2016 by ·
TransfarencySM, adj,
“Philosophy created by Southwest Airlines® in which Customers are treated honestly and fairly, and low fares actually stay low – no unexpected bag fees, change fees, or hidden fees. Created and practiced exclusively by Southwest Airlines.
Low fares. Nothing to hide.”
A lot to like in this. Nope, a lot to love in this. Value and pricing transaction experience are central to Southwest’s value prop which also stakes out a pricing leadership position as the “pricing good guy” in the US airline industry. Not hard arguably but someone had to do it. The value prop is clearly translated into the marcom message. And while a whole lot of teenage scribblers get excited over the antics of Ryan Air and other startups – yes Julie, I know you flew to Pisa for £5 from a cabbage field in Essex but this will end in tears, your children in Salonika and your baggage in Vilnius – Southwest have just kept it nice and simple and honest.
Can your business say the same? And if you’re not the pricing good guy in your industry, where on the “pricing good guy/bad guy spectrum” are you?
Paul’s Pricing Dictionary: Red Life Jackets
February 18, 2016 by ·
Red Life Jackets, adj+n,
Never complain about the color of a life jacket. Particularly red ones. Believe me, there is no such thing as “the wrong color” when it comes to life jackets. Particularly when you’re drowning. But there again you don’t have to believe me.
For life jackets of all sorts of nice bright colors – including red ones – and equally essential and illuminating pricing diagnostics: call 281-872-9821 or visit www.thepricingfactory.com
For pricing on perpetual leases for harps and other angelic instruments, call just about any other number.
Paul’s Pricing Dictionary: Bad Selling
February 10, 2016 by ·
Bad Selling, adj.+gen.
Bad Selling somehow never appears as an option in Bid-Loss analysis … but if there ever was a Bid-Win analysis … Good Selling would somehow get 100% of the credit. Of this I feel sure.
Paul’s Pricing Dictionary: Pricing
January 26, 2016 by ·
 Pricing, n, v.t., 1) sales definition: discounting, 2) product group definition: list pricing. Can’t see any room for ambiguity or confusion here. None whatsoever. Can you?
Paul’s Pricing Dictionary: Half
January 18, 2016 by ·
Half, n. – The amount of market-share change that is typically explained by pricing. That’s the good news. The bad news is that no-one has any clue what the other half is due to.
Paul’s Pricing Dictionary: Re-present, an illustration
December 10, 2015 by ·
I was asked if I could give an example of a deal which had been “Re-presented”.
Here’s are two simplified (fictional) deals:
| DEAL 1 | Region 1 | Region 2 | Region 3 | Region 4 |
| Product 1 | 15% | 10% | 20% | 15% |
| Product 2 | 25% | 35% | 35% | 25% |
| Product 3 | 40% | 35% | 40% | 40% |
and
| DEAL 2 | Region A | Region B | Region C | Region D |
| Product A | 40% | 40% | 40% | 35% |
| Product B | 35% | 25% | 25% | 35% |
| Product C | 20% | 15% | 15% | 10% |
Which is the better deal for the customer? Deal 1 or Deal 2?
Scroll down for the answer …..
They are the same deal.
Deal 2 looks better because it has been presented with the larger discounts in the top-left hand corner of the matrix. Using this approach certainly placated one customer who it turned out was becoming unhinged by the first discount which met their eye as it was presented in Deal 1: 15%. And then by time they got to the second number – 10% – they were no longer rational. Conversely when Deal 2 was presented they immediately thought that 40% was a huge improvement over the 15% – even though they knew they were for different products. In their mind they had characterized Deal 1 as 15%, and Deal 2 as 40%. And they thought, in the same way that probably everyone does, that they were a sophisticated, rational and objective purchaser.
Paul’s Pricing Dictionary: Panic
November 18, 2015 by ·
Panic, n. If your Pricing Team isn’t panicking, don’t panic. If the Pricing Team is panicking, then you should really feel free to panic.Paul’s Pricing Dictionary: Re-present
November 17, 2015 by ·
Re-present, vb. To re-present a deal by re-ordering and re-formatting discounts in order to give the impression of an improved deal. Not the same as re-structure in that the discounts quoted are exactly the same as before.
Paul’s Pricing Dictionary: Currency
October 28, 2015 by ·
Currency n. The first refuge of the scoundrel. 1) The first excuse used as soon as there is an adverse movement in exchange rates to explain business under-performance. This is a phenomenon which miraculously disappears as soon as there is a beneficial shift in exchange rates. 2) The perfect excuse for a list price increase. 3) One of the many reasons why list prices matter.
