Price optimization can be the most effective way to increase your bottom line, but is often neglected, especially by smaller companies lacking expertise and budget. Here’s a case study illustrating one cost-effective testing methodology for a consumer goods company. Case Study: Archie’s Organic Dog Treats Last year, Archie’s pitched his…

Whole Foods is more expensive than Amazon Fresh. Way more. Business Insider estimates Whole Foods is 15% more expensive than typical grocery, but it may be more. The chart below illustrates the gap with a sample product, Talenti Gelato (1 pint, or 16 oz), using the lowest prices I could…

Consumer-led pricing overview for executives. Key questions and approach. Calling all CEOs: If a genie offers to improve either your pricing, sales, or costs by 10%…choose pricing! It makes the biggest difference, because it is all profit. If for some reason the genie never appears, follow the consumer-led approach to…

A primer on magic price points — what are they, why are they important, and how can you recognize them. In pricing, we focus on “elasticity” (how sensitive are consumers to changes in price? If we raise price by 10%, by what percentage do sales go down?) But elasticity isn’t…

A discount can convince new people to try you and prior customers to buy more, but can also teach people to only buy when you are on sale (or maybe that you are a discount brand!) Promotions are often likened to a drug — the boost in sales is a…