When SaaS Freemium Is Not Free: The Gotcha “Strategy”

Diagram shows test questions to determine whether a SaaS freemium plan is in fact free or there are hidden or delayed costs

Part #1 of 2. Part #2 will be published next week, using a case study for the questions raised below. The “Free Plan” Challenge Freemium has become table stakes for myriad SaaS companies and the most successful customer acquisition tool for the SaaS industry as a whole. By providing genuine (even if limited) value and […]

Costco Prices: Bargains, Brilliance & Brand Consistency

Chart shows a variety of price point endings (the cents after the decimal point), with implications for Costco's strategy in using them

Costco Prices: Can Consumers Get Bargains Off of Bargains? Most consumers don’t know that Costco uses a “secret code” of price endings to communicate (though some astute shoppers and reporters have figured this out long ago).  Did you know that prices ending in .97 signal clearance, deep markdown, and generally a bargain even by Costco’s […]

The Package Insert: An Underrated Pricing & CLV Lever

Image illustrates package insert coupon that uses pricing strategy for channel optimization

The Missed Opportunity It’s back-to-school season, and for many of us that means more e-commerce purchases from direct-to-consumer or digital retail stores. Whether it’s this season or any other, I am always puzzled by the relatively high % of packages / consumer brands that miss a seemingly humble, yet important and near-free opportunity to be […]

Disney Puts On A Pricing Strategy Clinic At Parks and Beyond

image illustrates the main walk in a Disney theme park with throngs of paying visitors

The Walt Disney Company is putting on a clinic in #pricingstrategy and illustrating the concept of both value-creation and value-harvesting. In their excellent article, reporters Robbie Whelan and Jacob Passy show great depth and coverage of the levers Disney has been pulling to create superior profits with fewer visitors. The article details tactics like semi-firing the annual pass […]

Charging For Return Shipping: Legitimate Value-Based Pricing Strategy

Keyboard Returns Button

An often overlooked tool for pricing segmentation is ripe for a comeback: charging return shipping fees. It is a worthy tool in the pricing strategy toolset that brands must employ in this challenging environment. Footwear News is reporting on the increased uptake of this strategy among well-respected brands. While in the go-go times of no […]