There's been a lot of talk of downturns lately in Pricing and Revenue Management (PRM) circles. It was a major theme of the recent NAA Maximize conference and was also covered at NMHC OPTECH last week. While no one knows when the downturn is coming, everyone seems to agree that it's a good idea to plan for it. While occupancy and rent growth are still strong, the sheer length of the recovery since the last recession has everyone wondering how much longer this bull run can last.Read More
Dont know how many of you follow retail, but JC Penney just pulled the plug on one of the biggest experiments in pricing historyacknowledging it to be a colossal failure. In short, Ron Johnson, the architect of a move from constant couponing to simple fair pricing is out. And expect coupons to be back in.
I was skeptical when he was hired and announced his plans less than 2 years ago on two grounds: 1) Walmart kind of owns the every day low price model (plus its not clear that everyday fair pricing has an authentic ring to it anyway) and 2) more often than not, I find people like to feel theyre getting a deal. In other words, discounting sends a psychological signal that is more powerful than simple pricing.Read More
Welcome to my first foray into the world of blogging. As the title of the blog suggests, Ill talk a lot about pricing and more. Along with revenue management and pricing psychology, well discuss all sorts of other demand management issuesmarketing, credit scoring, sales process, and more. Some of it will be serious and some just amusing. Many ideas will come from me, but many will come from other experts in the field, from clients (with their permission) and from readers (so send your own observations or questions to me at Donald@imaginellc.com).Read More