Almost all of us have experienced Fenced Pricing but probably never thought much about it. Fenced Pricing is what the name implies, to create barriers or “qualifiers” for different types of pricing. Examples include: So why do companies use Fenced Pricing? The answer is simple… to prevent diluting their core revenue. Revenue “dilution” is aContinue reading “Fenced Pricing”
Monthly Archives: July 2021
Segment Pricing
What is Segment Pricing? Segment pricing involves dividing your target market into different groups (or segments) based on their willingness to pay. The willingness to pay can be based on location, time and/or customer type to name a few. Location: Different geographical locations have different cost structures. For example, costs in big cities are muchContinue reading “Segment Pricing”
Marketing and Pricing
The definition of Marketing is “to provide products or services that meet the needs or wants of customers.” Marketing involves the 4 P’s. Product, Place, Price and Promotion. You can get a university degree in each of those 4 disciplines, but briefly: Product: What to producePlace: Where to market your products or servicesPrice: How muchContinue reading “Marketing and Pricing”
The Art of Pricing
The art of pricing involves analyzing a complex set of variables. And pricing can be circular with the products or services being offered. For example, when offering a product or service one can determine the price that customers are willing to pay. However, the price that customers are willing to pay affects how the productsContinue reading “The Art of Pricing”
Three Tree Solutions 