Topic: Dynamic Pricing
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Tariffs and the Power Game: A Prisoner’s Dilemma with a Twist
If your firm is battling against a small number of strong competitors to serve a handful of powerful customers, the implementation of significant tariffs risks upsetting a delicate balance of power in the industry that reflects narrow differences between sellers. That’s why even one pricing misstep amidst the uncertainty can have a material effect on…
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How to Cut Prices Without Cutting Prices
In Part II of Game Changer my co-author Arnab Sinha and I devoted a chapter to the Cost Game and its core pricing model, the much-maligned cost-plus approach. Many companies succeed with this model by making cost management their superpower, but face challenges when their input costs decline significantly. In this week’s guest contribution, our…
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Reddit adds ads
Reddit is opening up a new revenue stream by testing dynamic product ads on its popular social media platform. Launched about a month ago, the new initiative automatically places ads into active customer discussions about a potential product purchase. Their initial tests showed that the dynamic ads could almost double an advertiser’s return on advertising…
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Can Wendy’s make “surge pricing” a success?
The restaurant chain recently announced plans to implement dynamic pricing starting in 2025. At first glance, that seems like a non-starter. Imagine that you kindly let someone cut in front of you at Wendy’s at lunchtime because you are not sure what to order. A minute later, you look up at the digital menu board…
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Can Wendy’s make surge pricing a success?
Can Wendy’s make “surge pricing” a success? The restaurant chain recently announced plans to implement dynamic pricing starting in 2025. At first glance, that seems like a non-starter. Imagine that you kindly let someone cut in front of you at Wendy’s at lunchtime because you are not sure what to order. A minute later, you…
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The carry-on baggage bubble is about to pop
American Airlines announced this week that they will increase the first checked bag fee from $30 to $35 if purchased in advance online and $40 at the airport. It marks the first increase since 2018. The current trends in airline baggage pricing highlight a growing disconnect between passenger expectations and carrier revenue strategies. In Game Changer, we…
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What do you think of congestion pricing?
What do you think of congestion pricing to keep motor vehicles out of city centers? Would you want it in your city? The city of Boston, Massachusetts, opened discussions about such a program last week, as New York City nears implementation of its own plan. Advocates of congestion pricing programs cite reductions in traffic and…