Tesla’s Pricing Strategy: A Taxpayer Subsidy Beggar?

Image shows a Tesla sedan positioned in front of a wall with the company's logo and name.

Note: A version of this article is submitted for publication on Seeking Alpha, the world’s largest investor site, where I occasionally contribute on companies that make consequential pricing strategy decisions. Summary Tesla‘s price cuts signal deep distress ahead based on even basic pricing math, with breakeven virtually certain to be unachievable.The direct admission embedded is that […]

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 […]

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 […]

Catalyst Quote & Comment: Warren Buffett On Price Versus Value

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.  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 the theory of the greater fool). The answers virtually always […]

Trupanion’s Price Increase For Pet Insurance Barks of Desperation

Pet owner finds better insurance quotes while King Charles Cavalier Spaniel looks away concerned.

Summary   Note: This article was published on SeekingAlpha, the world’s largest investor site, on November 14, 2022. At the time of submission, the last closing price (as of Friday close on November 11) was $64.86. Trupanion has higher loss ratios and higher premiums than its competitors, which will squeeze it between a rock and […]

Successful Pricing Strategy? Your Suppliers Want In

Image shows logos of Pantone, Pantone direct and Adobe. The Adobe logo has bags of cash with a green upward arrow suggesting increase. The Pantone and Pantone Connect logos suggest to aim demands for payment, with an extended open hand for Pantone and a harpoon aiming at Adobe's cash for Pantone Connect.

Summary The dispute between Pantone and Adobe has unnerved Adobe and many of its users, showing that key suppliers may successfully press for participation in economic gains from subscription pricing. With many price increases across the economy, both B2B and B2C brands asserting rationales of “increased value” should review their supplier relationships and prepare for […]