The cost plus pricing model has ruled the flower business for as long as I have been a part of it. This led to a fascination with the pricing in other industries.... where there were prices that clearly could not be explained by the cost plus approach. This led to an obsession with how current yield/revenue management techniques could be used to make retail florists more successful.
Multiple paths to the same destination can seem user-friendly but, more often that not, it complicates decision making and necessitates more questions.
This article is fascinating because it so clearly misses the mark. Despite what the author says the cost of travel is cheaper today, thanks to unbundling.
It's clear it costs less to distribute e-books than printed books, so why do e-books cost as much or more if price is determined by a cost-plus formula?
Even in business-to-business selling the ways costs are presented can lead smart owners to make bad decisions.
Airport car services use a well designed hurdle as part of a price discrimination strategy that limits discounts to only the most price sensitive buyers.
The flower business has much in common with the restaurant business (often more than with other retail) and florists can benefit from foodservice research.
The underlying concept of diminishing marginal utility is easy to understand but the vagueness of the term makes the definition easy to forget.
New content on how florists can use advanced pricing strategies to increase the volume and profitability of their event business is coming to the GLFE and WUMFA Annual Conventions in 2015.
It was a pleasure to attend and participate in the FSFA convention in Weston Florida and meet the amazing volunteers that put it all together. people that attended the session on how advanced pricing techniques can be used to increase sales and profitability in retail floral.
I'll be presenting a Beyond Cost Plus session on new approaches to pricing and quoting events at the 2014 FSFA Annual Convention.
A personal example of very different reactions to the same product at the same price but expressed using two different pricing models.
