Of Course Disney Should Use Surge Pricing at Its Theme Parks

Disney is reportedly considering implementing surge pricing at its theme parks, which makes total sense. Demand is stronger on some days relative to others – hotels and airlines change prices based on demand, why shouldn’t Mickey. While it makes sense to raise prices during peak periods, I think the bigger play is actually focusing on the growth generated by offering low prices on select “slow period” days.

Please check out my latest piece for the Harvard Business Review which discusses surge pricing. While peak/off-peak pricing is typically used to change demand in fixed capacity industries – I extend the applicability of surge pricing to instances when capacity is not fixed as well as when supply varies.

As always, thank you for reading my blog!

Posted on June 4th, 2015 (0 Comments)

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The Apple Watch’s Big Pricing Problem

Preorders for the Apple Watch kickoff today and expect the wild hype that Apple is expert on - ever notice how there’s always a shortage of Apple’s latest product? A few interesting facets of the Watch’s pricing standout: (1) Apple is releasing a variety of styles – and while the styles are different, the inherent technology is the same (typically Apple releases a few models that differ by technology) and (2) The price range of the Apple Watch ranges from $349 to $17,000. No, $17,000 is not a typo!

Apple is hoping that the Watch will be its next big hit – its pricing strategy isn’t doing it any favors. Please check out my latest piece for the Harvard Business Review which discusses why I think Apple blew it on its pricing strategy and what it should have done instead. 

I discussed this piece on Bloomberg West this afternoon, here's the clip

Posted on April 10th, 2015 (3 Comments)

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Price-Sensitive Customers Will Tolerate Uncertainty

I enjoy improving margins through higher pricing as much as (perhaps even more) than everyone. However, what I’m learning is that the real creativity of better pricing involves designing pricing strategies to grow your business by activating dormant customers. So contrary to popular thought, activating dormant customers through targeted lower prices is a key strategy that all companies need to focus on.

Please check out my latest article for the Harvard Business Review which discusses how to use uncertainty to separate those who truly deserve a discount from posers who claim they need one. Just as importantly, this article reveals my s-e-c-r-e-t to saving a fortune on hotels – something that we all can appreciate too!

As always, thank you for reading my blog.

Posted on March 26th, 2015 (0 Comments)

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