Pruning Customers to Increase Profitability In A Supply-Constrained Environment

Many companies operate on the assumption that any customer providing “some” additional contribution margin is a good customer. Surely having it is better than the alternative, they reason. This week, FedEx disagreed. It didn’t just let go 1,400 customers, but made it public. It put both customers and competitors on notice that severe supply constraints […]

To Decrease or Not to Decrease Hotel ADR?

Weighing Scale with words

Following the economic fallout of 2020, many hotels and other tourism businesses have rushed to lower prices to stimulate demand.  In this article analyze the competitive challenges of hotel ADR in the current climate. We also explore what Hotels can do to maintain price and deliver value ahead of the fast-approaching upturn. Read the full […]

Pricing Policies & Promotional Strategy: The Third Pillar of Online Sales Control

Black Friday Deal Poster

Brands in the online marketplace era should first level-set their channel management strategy to mitigate online disruption and best position themselves to be able to govern the online marketplace channel. Brands must have the requisite foundation and processes to enable efficient, effective and legally grounded enforcement against unauthorized sellers. Next, brands must carefully align their […]

Usage Pricing: Better than Subscriptions?

5 red iconic telephone boxes

During the past decade, the subscription pricing approach has been widely adopted. After all, many tech companies have built thriving businesses with this business model, such as Salesforce.com. Read the full article     Photo Credits: Unsplash/Nick Fewings

How DoorDash’s New Pricing Structure Will Affect Restaurants

Door with DoorDash sign message

DoorDash announced it is changing to a tiered pricing system for restaurants that allows them to pick from three plans with different commission levels. The company is also lowering pickup commission rates and making changes to Storefront, its ecommerce store product for restaurants. As restaurants emerge from the coronavirus pandemic, fees like this will continue […]

Airline ‘Continuous Pricing’ Gains Traction, but Widespread Use a Ways Off

Airplane Seats

“Continuous pricing” has been popping up as the latest strategy in airline revenue management, and although several large airline groups are employing it on a small scale, the concept still faces technical and regulatory challenges before it becomes widely used. Read the full article: Airline ‘Continuous Pricing’ Gains Traction, but Widespread Use a Ways Off   […]