Uber recently retreated from it’s no tipping policy. While the rideshare company still maintains tipping is not necessary, it now allows drivers to ask for as well as post signs that encourage voluntary gratuities.
While relaxing this policy is no big deal, the process that passengers provide a tip is problematic. Now, riders will have to fork over a tip before their driver rates them. The result? A Tony Soprano-like veiled threat, “Pay up or I’ll give you a low rating.”
Please check out my latest piece for the Harvard Business Review which reaffirms the importance of structuring a pricing strategy properly.
Also, if you’re so inclined, please check out our new enhanced consulting section – we offer many services to help companies price for profit and growth.
Posted on May 5th, 2016 (0 Comments)
In the name of protecting consumers from being “gouged,” two Senators recently introduced a bill that will require airline add-on fees to be “fair and proportional” to their costs. What these Senators don’t understand is regulating add-on fees will actually harm consumers. Any regulation will result in the base price of airline tickets rising.
For full insights – and reasons why this Senate bill makes no sense – please check out my Op Ed in today’s Wall Street Journal. The Journal has a paywall – so consider subscribing or stopping by your local newsstand for the full article.
Posted on March 30th, 2016 (0 Comments)
How many of us believe “list” or “original” prices are meaningful, in any way, to consider when making a purchase? Most of us are dubious of their veracity…but somehow seeing a higher such reference price brings us comfort. In the best light, reference prices (list, original, manufacturers suggested, etc.) are aspirational and at the worst, well, deceptive.
While it’s easy to shrug off misleading reference prices with a “caveat emptor,” I don’t think we should condone this chicanery. In their current form, reference prices provide no practical benefit to consumers. Please check out my latest piece for the Harvard Business Review which discusses reference prices and provides a prescription to make them more meaningful.
As always, thank you for dropping by to read my blog!
Posted on March 23th, 2016 (0 Comments)