P.T. Barnum On The Importance of Promotion … Does It Have To Be Price Promotion?

Image shows a framed quote attributed to P.T. Barnum "Without promotion, something terrible happens ... nothing!"

Illustrating the point It’s the make-or-break holiday season for retailers and consumer brands, and the words “promotional environment” are everywhere. Categories like footwear and apparel, which are both seasonal and often discretionary, seem to be particularly sensitive to “how promotional” to get in this environment. Even brands like Lululemon, who take pride in a “no […]

Value Based Pricing, Buffett’s Quote & Crypto

Image shows a framed quote "Price is what you pay. Value is what you get," attributed to Warren Buffett

Illustrating the point One word: Crypto.  It presents us with quite the value based pricing conundrum. There has always been the uncomfortable moment when this or that crypto believer (or pusher) is asked to explain what gives Value to crypto assets (aside from psychological failings of human nature like greed, fear-of-missing-out (FOMO), pyramid schemes, and […]

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” […]

Netflix: Ad-Supported Plan As Masterful Pricing Strategy

Image shows the Netflix logo with a bye line "Starting at $6.99 / month"

Summary Netflix will have significantly more attractive economics on the ad-supported plan than on its basic and premium plans. The plan pricing is cleverly framed as both “significant savings” vs. existing plans and as cheaper than competitors. In effect, Netflix is paying subscribers significantly less than $1/hour to watch ads. At a Hulu-comparable $30/CPM, it […]

Catalyst Quote & Comment: Oscar Wilde On People Who Know The Price Of Everything

Image shows a framed quote attributed to Oscar Wilde "Nowadays people know the price of everything and the value of nothing."

Illustrating the point Consider the following title and the story in the MIT Technology Review article: Meta is desperately trying to make the metaverse happen Meta’s pricey Meta Quest Pro VR goggles leave us with a clear price tag that seeks to confidently push aside many questions about value. Just as Oscar Wilde’s skepticism was […]