Game: Dynamic Game
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Should a Surge in Demand = a Surge in Pricing?
As companies increasingly adopt dynamic pricing, the balance between profitability and customer perception of fairness becomes crucial. My colleague and co-author Arnab Sinha reveals what executives should keep in mind as they think about whether they should be changing their prices more frequently. 🎢 A theme park charging more when the sun is shining? 🍔 A…
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The Price of AI
In: Dynamic Game Gen AI
My colleague John Pineda spoke to Fortune last week on how businesses are grappling with a more practical dilemma around artificial intelligence—how to put a price on it. John encourages leaders to understand if their AI applications are augmenting humans or fully replacing tasks. He also emphasizes that “Experimentation drives value. Get people using it, trying…
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Restaurant pricing
I recently had the pleasure of discussing the future of restaurant pricing and tipping with Roger Beaudoin on the Restaurant Rockstars podcast. As we navigate through challenging economic times, understanding and innovating pricing strategies becomes essential in the restaurant industry. 🎧 Listen in for strategies on how restaurant owners can thrive in today’s competitive market.…
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Tesla robotaxi
How much value will Tesla’s robotaxi create? This will become a serious question if Elon Musk follows through on his plans to unveil the robotaxi in August, because Tesla will have a unique opportunity to help define the price model for a new category of door-to-door transportation. This new vehicle unlocks significant potential value for…
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Diageo on consumer trends and social media
Diageo, a world leader in branded alcoholic beverages, has started to look beyond conventional market research to identify what consumers want. By drawing inferences from the stories consumers are already telling – on social media and other platforms – they have identified several strong trends that have implications for building consumer brands. My quick interpretation:…
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Will introvert economy reshape businesses?
Is the “Introvert Economy” so pervasive that it will reshape many business models? The term refers to a large swath of the US population that interacts less than previous generations, indulges less, and spends more time at home and online. The pandemic reinforced many of these behaviors by serving as a multiyear trial run of…
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Epic games shows how to differentiate with pricing models
Epic Games, the developer of Fortnite, exemplifies how companies can use different pricing models – rather than different price points – to differentiate themselves across customer segments. Developers that use Epic’s tools to create games for sale to end-customers pay Epic a 5% royalty on all game revenues above $1 million. But what about companies…
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EVs are getting less expensive
Electric vehicles (EVs) are getting less expensive as more manufacturers introduce vehicles in lower price tiers. China’s BYD overtook Tesla last year as the largest manufacturer of EVs by selling lower-priced vehicles. And now Rivian has followed suit. It seems that EV manufacturers are recalibrating the price-value relationship by offering vehicles designed for lower-price…
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The Choice Game: Personalized pricing
Aligning your company’s offers with the unique demands of different customers is key in the Choice Game. The game is particularly relevant to those who offer tiered subscription services. BCG pricing expert Matthew Kropp dissects the details. Learn more about strategic pricing and the new book from BCG’s pricing practice. My colleague Matthew Kropp discusses…
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Game-changing pricing strategies
I recently sat down with Mark Stiving, host of the Impact Pricing Podcast, where we discussed the transformative power of pricing strategies for enduring business success. Discover the significance of sharing value with the market, the impact of pricing models over prices, and the potential for strategic pricing to foster long-term customer loyalty and business…
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Why aren’t green buildings ubiquitous?
“Green” buildings should be ubiquitous, considering the decisive role they can play in mitigating the effects of climate change. UN General Secretary Antonio Guterres has said that “how we design power generation, transport and buildings in cities – how we design the cities themselves – will be decisive in getting on track to achieve the…
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The Dynamic Game: Pricing that adapts to demand
In: Dynamic Game Fairness
Players of the Dynamic Game need to develop unique skills to constantly adjust prices in real-time, adapting to context, competition, and ever-shifting market conditions. Pricing expert Fabian Uhrich lays out the rules. To learn more about strategic pricing and the new book from BCG’s pricing practice. Be sure to watch Fabian Uhrich’s expert interview,…