Topic: Pricing Strategy
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Video on the Custom Game
BCG’s Cesar Torres explains the rules and relationships necessary to play the Custom Game in the latest installment of the Game Changer Expert Interview Series. In this video, Torres describes the nature of the Custom Game, what forces drive pricing, and how players can gain competitive advantage. To learn more about strategic pricing…
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JMI speaks in Munich
In: Pricing Strategy
Last week, I had the privilege of speaking at the 2024 Pricing Strategy World Summit in Munich. It was a wonderful opportunity to share insights on strategic pricing and discuss the latest trends with fellow industry leaders. Thank you, Ardensi, for making this possible.
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Fragrance market
The market for fragrances exemplifies why companies should understand their market characteristics carefully rather than assume a certain market structure can or should exist. This recent report from Circana – the company formed by the merger of consumer insights firms IRI and NPD – describes the fragrance market as having a growing luxury end and…
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Wealthier shoppers at the Dollar Tree
Is persistent inflation luring wealthier consumers into the dollar-store market? Their share of shoppers earning over $100,000 per year is growing, and slightly wealthier consumers are the fastest-growing demographic at Dollar Tree stores. In the meantime, Dollar Tree’s pricing seems to occupy the best of both worlds, with options at the low end and an…
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McCormick moves prices higher
How much longer can consumer packaged goods (CPG) companies continue to drive higher profits through higher prices? The recent quarterly results of spice maker McCormick seem to show that the trend is still going strong, but the aggregate view masks some underlying trends. Overall, McCormick’s price increases continue to drive higher gross margins, but performance…
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CEO events in Milan
In: Pricing Strategy
Yesterday, Arnab Sinha and I had the privilege of presenting and promoting strategic pricing in Milan. We engaged with clients and colleagues across three different sessions: a masterclass, a CPG workshop, and a CEO dinner. One key takeaway from this experience – pricing is a top concern for business leaders across the world. To…
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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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Announcemen of Munich speech
In: Pricing Strategy
I’m looking forward to giving the keynote presentation at the Pricing Strategy World Summit 2024 in Munich next week. In my speech, I’ll discuss strategic pricing, the Strategic Pricing Hexagon, the seven fundamental pricing games, and more. To learn more about these concepts and to order your copy of Game Changer.
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A high demand for poor quality – so bad it’s good
A high demand for poor quality seems like an Orwellian oxymoron. However, experiments by a team at Wharton found that when given a high-quality, medium-quality, and low-quality entertainment option, respondents often chose the low-quality option because they expected it to be bad. Things that are “so bad it’s good” (SBIG) create their own kind of…
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Travelers are prioritizing experience and personlzaition
Travelers are prioritizing experiences and personalization, according to this report on global travel preferences and behaviors. Millennials and Gen Zers have an especially strong desire to travel for sporting events, with 67% expressing interest in attending such events in 2024. Attending live sports events has become one of the key “water cooler” institutions remaining in…
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What is a Fair Price for Lithium
What is a fair price for lithium? Perhaps a better question is: what is the best way to find a fair price for lithium? Albemarle, the world’s leading producer, has begun to switch its pricing mechanism from fixed-price contracts to auctions. The goal is to achieve “fair product valuation — for both buyers and sellers…
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Moving from Custom Game to Choice Game
Shifting from the Custom Game to the Choice Game means creating packages of products and services that can help businesses avoid commoditization and embrace the new, while offering simpler, more attractive options to customers. BCG’s Lionnel Bourgouin explains the rules. To learn more about strategic pricing and the new book from BCG’s pricing practice. Don’t…