What Uber Knows About Pricing

In addition to revolutionizing the concept of transport in cities, Uber is also an example of how trends in price management are changing within companies.

Monday, May 16, 2016

The processes and methods followed by businesses to determine the sales prices of their goods and services are changing as fast as the tastes and preferences of consumers. Products whose prices often vary after a few hours, and "custom" prices are some of the new trends that companies are now following when setting prices. As Ariel Baños explains, the controversial and revolutionary company Uber is a very good example of new ways to set prices today.

By Ariel Baños
President and Founder of Fijaciondeprecios.com

Prices are coming out of their traditional straitjacket. And I do not just mean movements because of the impact of inflation, but new management practices that are beginning to spread in different markets. In some cases prices are relaxed, and adjusted at any time and place, the real value being represented by what is being consumed by each client. We are entering the era of dynamic and customizable prices.

The resonant launch of Uber in many cities, in addition to revolutionizing personal transportation, is also a sign of this new trend in price management.

Read full article (in spanish).

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The search for the ideal margin is an aim that keeps a lot of business owners up late at night, but this kind of reasoning does not always help them be more profitable.

In general, those who ask themselves what price they should set for their product, start from an incorrect premise: using the cost as a starting point. 

How to Set Prices in 2018

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Planning adjustments to avoid the loss of profitability and redefining discount policies are some of the goals that companies should consider when deciding on their pricing strategy for the new year.

The last weeks of December are generally a good time to evaluate the results of the strategy implemented throughout the year that is ending, and to reevaluate plans for next year. Ariel Baños, a specialist in price management, recommends that companies commit to five principles in order to get the information needed to decide on plans for next year.

Strategies Used By a Large Corporation to Fix Prices

March 2016

The "four secrets" of the technology giant Apple used to set prices of their product lines.

There is no company, large or small, that does not face challenges in determining prices and suitable profitability margins for their products and services today. However, some manage their prices better than others.

What to Do When We Have "Expensive" Prices

February 2014

How do we avoid losing customers because our product or service seems too expensive?

"No, thank you. It is very expensive": Key points to remember when customers object to our price.

By Ariel Baños
President and founder of FIJACIONDEPRECIOS.COM

"- No, thank you. It's very expensive.

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