Tag Archives: Retail Price Discrimination

Why Should Walgreens Get Bad Rap For Good Pricing Differentiation?

Walgreens (at the corner of Happy & Healthy) can’t be too happy with headlines last week, when CNN Money, Time, Huffington Post, MSN.com and many others took Walgreens to task that customers might ...
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5 Valid Reasons For Retailers To Price Differentiate By Geography

A recent Wall Street Journal article, “Online Retailers Vary Prices Based on a User’s Location” (December 24, 2012) reported that several large retailers including Home Depot, Lowe’s, Rosetta Stone, and a renowned office-supply company varied their web-based pricing based largely on a customer’s location (a procedure called price differentiation). ...
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How To Get Your Customers To Like Price Segmentation

Can you charge individual customers different prices? Are you doing it? The secret is to do it in a way that they’ll like and appreciate. In 2000, Amazon.com famously did some price testing that caused customers to be quoted different prices for the same product — and got in trouble for it. Jeff Bezos, the CEO of Amazon, claimed it was “random pric...
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How Retailers Can Gain Pricing Power Through Product & Service Differentiation

More on pricing strategy and value-added services: If you have no differentiation from the market, you are a commodity. When you’re a commodity, you have no pricing power. So unless you happen to have a sustainable, defensible cost advantage (hello, Southwest Airlines), you’re going to be in big trouble.

So what about competitive pricing? How ...
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Should Retailers Price for Loyalty or Price By Willingness to Pay? The Contradiction

When it comes to competitive pricing, value-based pricing maximizes your profits. At its simplest this means charge what your customers are willing to Pay (WTP). When you have the ability to charge different prices to different customers, charge more to the ones with higher WTP. We’ve discussed this as price segmentation in recent articles. What...
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Tantalizing Ways Online Retailers Can Use Price Discrimination To Maximize Profits

Marketers can now plot the perceptions of each customer segment, and create different value propositions in which price will play greater or lesser roles. With price discrimination, online retailers can maximize profits by monitoring how the customer comes to their website and collect the top dollar according to perceptions of how much the customer...
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