Cost of Stockout vs.Overstock - 6 Factors to Consider and Why It's Not Just for Physical Goods

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It's not just about physical goods anymore

Although this concept of "cost of an overstock vs. cost of a stockout" is most closely associated with inventory management of physical goods in a retail environment, it's also highly applicable to service industries and can be applied to software and virtual good and services as well.  In this post we'll cover what to consider when making these overstock vs. stockout decisions

3 ingredients necessary for price discrimination

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As discussed in a previous post, despite its negative-sounding name, price discrimination can be a powerful tool for creating value for your business.  In this post, we'll go over the three conditions necessary to enable price discrimination...

PRICE DISCRIMINATION - Sounds bad, but can be great for your business and customers

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Price discrimination is the practice of charging different customers different prices, based on their ability or willingness to pay.  In this post we'll go over some examples of price discrimination and how it creates value.

Price promotions - competing against your future self

Price promotions are important elements of any pricing strategy.  However, they should be used with caution.  In this post, we'll review how putting items on sale now will shape how consumers view your future pricing

Price promotion - 5 benefits beyond increased revenue

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One common goal for price promotions is to increase revenue - but they can drive additional benefits for your company that can make price reductions successful regardless of their impact on revenue.  In this post I'll discuss 5 of those benefits...

Pricing decisions - the volume / revenue trade-off

Whenever you adjust your pricing, you're volume will change, and you impact your revenue.  In this post we'll discuss how to think through those dynamics.  What happens to your revenue - and more importantly, profit - when you raise or lower price and what you need to know to predict the outcomes.

It's worth noting that if you're changing price as part of a promotion, the volume increase is only one part of potential value created and deciding whether or not it's worth doing.  See the related post on price promotion benefits beyond additional revenue for more information.

Marketing Funnel - 4 common mistakes companies make in customer adoption

In this post, I'll go over 4 common mistakes companies make regarding their marketing funnels.  The marketing funnel is the journey a person takes to become your customer - if you're unfamiliar with the marketing funnel (a.k.a. customer or product adoption process), please see my previous posts introducing the marketing funnel and how to diagnose it.