Pricing Power: Part 1 – Searching For A Useful Definition for 2023

Image shows business man with pink blinders about to head over the edge of the cliff while holding a pink book and a sign reading "Right Way". In the distance, a blue sign points the opposite direction away from the cliff edge.

“Pricing Power” has become a household term in the last couple of years, as the importance of pricing was revealed and elevated in every corner of the economy. It has also become, unhelpfully, a bit of a loose buzzword that can become limiting and rather … disempowering. 2023 and beyond will require a better understanding […]

Catalyst Quote & Comment: Sam Walton On How The Customer Can Fire Everyone

Image shows a framed quote attributed to Sam Walton "There is only one boss. The customer."

Illustrating the point One word: Metaverse.  It’s been a very tough week to be any of the tech giants, with Amazon, Google, Microsoft, Apple, and Meta all reporting missed earnings or declining revenue guidance. Every brutal line of bad news basically boils down to one thing: customers are or will be spending less, and these […]

Catalyst Quote & Comment: Lee Iacocca On People Who Want Economy

Image shows a framed quote attributed to Lee Iacocca ""

Illustrating the point This past week we had the coincidental opportunity to write at some length about Netflix’s new plan for “people who want economy”, in an article that illustrates the very point of the Catalyst Quote: Netflix’s Clever Price Framing Will Ring The Register On Ad-Supported Plan In the article, we show that “economy” […]

Footwear Pricing Strategy: Nike, Stock Prices & Pricing Power

Image shows inverted Nike swoosh logo in black pointing downwards, against a graph with Stock Price on the Y axis, and Markdowns on the X axis, suggesting stock price decline is caused by higher markdowns. A generic price tag with a dollar sign is hanging from the lower end of the swoosh, suggesting pricing is weighing down on the stock performance. A stamp with the word Transitory suggests this is a transitory relationship.

Nike’s stock price fell (a lot). Does this tell us anything about its “pricing power”? Last week, the world’s largest footwear and apparel company lost about 15% of its market cap, taking a lot of the sector down. It had already been by and large a very rough year for footwear company valuations. Some semi-professional analysts urged […]

When SaaS Freemium Is Not Free: The Case Study

Part #2 of 2. Part #1 When SaaS Freemium Is Not Free: The Gotcha “Strategy” was published last week and sets the stage for how to evaluate (and generalize findings) from a case study like the one we tackle here. (Note: All references to a specific company name have been removed, and images have been […]