Consolidation Shipping

Continuing with the theme of Volumetric Weight and Density it is now time to talk about consolidation when it comes to shipping.  Consolidation occurs when freight forwarders get various sizes and shapes of cargo and build them up into ocean containers or aircraft positions to minimize volumetric weight. Let’s look at the example below.  TheContinue reading “Consolidation Shipping”

Volumetric Weight and Density

We have been talking about product pricing and customer segmentation in past articles but one thing we need to discuss is how to deliver parts and products from the origin to the end customer.  The best products in the world are no good if you cannot deliver it to your customers in an effective andContinue reading “Volumetric Weight and Density”

Cannibalization and Revenue Dilution

Speaking of multi-product pricing we must address the elephant in the room.  Cannibalization and Revenue Dilution are big items that need to be addressed and understood. Cannibalization:  This is when a company offers a new product or service that takes revenue from their other products or services.  Cannibalization is very common in certain industries suchContinue reading “Cannibalization and Revenue Dilution”

Multi-product pricing

Product pricing is a bit different than pricing for services however many of the concepts are the same. As mentioned in Segment Cost Types there are differences in the cost variables.  Product pricing has more manufacturing cost types and the time horizon of the product has a longer life span when compared to a service. Continue reading “Multi-product pricing”