Aldi Is Unbundling Grocery Shopping (and Prices). Its U.S. Moment Is Now.

Image shows an Aldi supermarket store front

Grocery Shoppers Pay for Niceties, Not Just Groceries Few people realize that when they pay for a basket of groceries, at most leading grocery stores they’re paying for a “bundle.”  As in, not just a bunch of food items they will take to their families, but a fair few extra niceties that are “included” in […]

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 […]

(Part #2) You Raised Prices. Demand Is Softening. Now What?

decreasing cash suggests lower available spending to power demand

Recap In Part 1 of this series, we suggested 5 potential focus areas for companies facing softening demand. This broader lens applies whether they have taken recent price increases, are considering new ones, or simply asking “Now what?” Here’s the list: Understand your current margin profile(s) and the relationship to your pricing stance Rebalance pricing […]