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The Hidden Costs of Cost-Plus Pricing

Despite the increasing industry-wide move towards and focus on value-based pricing, it is still clear that cost-plus has its role as a pricing strategy in a number
of instances. But even when a cost-plus pricing strategy is used, be careful about what the real advantages are, and what alternative strategies exist. Kalle Aerikkala, Business Consultant at Vendavo, has worked within the pricing and product management profession for the last 10 years, starting with Finnish technology companies supporting service and spare part pricing globally. He can be reached at Continue reading

Breaking the Commodity Trap in Trade Finance

Long thought of as a commodity to build relationships, trade finance (the financial products used to facilitate international trade and commerce) has significant, latent profit potential that commercial banks are now unlocking with a new, balanced approach to pricing, as the authors explain. This industry specific article provides pricing insights and principles that can be applied in multiple industry sectors. Sumitra Karthikeyan ( is a partner and managing director in the New York office of Boston Consulting Group. Jacopo Meneguzzo ( is a project leader in the firm’s New Jersey office. Ian Wachters ( is a senior partner and managing director in BCG’s Amsterdam office. Tushar Agarwal ( is a principal in the firm’s Jakarta office. Martin Van den Heuvel ( is a partner and managing director in BCG’s Amsterdam office. Frederik Wirtz-Peitz ( is a consultant in the firm’s London office. Continue reading

Behavioural Pricing: Instrument for Revenue Growth

The use of behavioural pricing tactics to influence customer buying behaviour
is not a new phenomenon, but it is being increasingly implemented by traditional B2C and B2B companies in recent years. In this article, the authors identify and examine three specific opportunities for pricers to employ behavioural pricing tactics. Arjen Brasz ( is a Senior Director at Simon-Kucher & Partners in Amsterdam. Frank Kroeze ( is a Consultant at Simon-Kucher & Partners in Amsterdam. Continue reading

Machine Learning for the Masses: Regression Analysis

Machine learning and artificial intelligence have become very popular topics in the pricing community. However, many perceive these tools as overly complex and not practical to implement quickly into their existing processes. In this article, the author presents a machine learning technique called regression analysis and demonstrates simple applications that can be readily employed by pricers in any industry. Nathan
L. Phipps is a Consultant at Wiglaf Pricing. He is responsible for the training preparation and conjoint analysis that supports pricing projects for Wiglaf clients. He can be reached at Continue reading

Action Plan for Pricing Industry Growth

In the Q2 edition of the Journal of Professional Pricing, Professional Pricing Society presented an article from PPS board member Stephan Liozu, PhD, regarding the state of the pricing management software industry. This month, we present a response to Liozu’s analysis from pricing management software provider Vendavo. Author Bruno Slosse, President and CEO of Vendavo, brings more than 25 years in technology experience to the company, including a strong track record in growing companies, expanding their global reach and broadening their product offering. He can be reached at Continue reading

Sympathetic Pricing: Create Brand Supporters

In this article, the authors examine three types of sympathetic pricing – painkiller
pricing, compassionate pricing and purposeful pricing – and demonstrate how
companies have used these pricing tactics to increase both brand trust and brand
loyalty. By applying sympathetic pricing, you can turn a negative experience for
a customer into a positive one, thereby giving the customer a positive contact
moment with your company, as the authors explain. Arjen Brasz ( is a Senior Director at Simon-Kucher & Partners in Amsterdam. Frank Kroeze ( is a Consultant at Simon-Kucher & Partners in Amsterdam. Continue reading

Pricing Dashboard Design

Executive dashboards are valuable tools for coordinating across disciplines as well as for communicating critical business metrics to executives. Since pricing impacts these key business metrics, which elements should the pricing team include in their pricing dashboards? In this article, the author provides a list of items to consider when building a pricing dashboard. Tim J. Smith, PhD is the founder and CEO of Wiglaf Pricing, adjunct professor at DePaul University, and Academic Advisor for the CPP designation. His most recent book is Pricing Done Right: The Pricing Framework Proven Successful by the World’s Most Profitable Companies (Bloomberg Financial, 2016). He can be reached at Continue reading

Subscription-Based Software Pricing: How to Migrate Customers from a Perpetual to a Subscription Model?

In this digital age, an increasing number of both business-to-business and business-to-consumer companies are engaging in a pricing transition from traditional outright purchase or perpetual pricing model to a subscription-based pricing model. In this article, the author lays out key steps to take when switching from perpetual software licenses to subscription pricing models. He also addresses common objections to this pricing transition and solutions to address these concerns. Author Paul Hunt is the president of Pricing Solutions and a frequent PPS presenter, instructor, and contributor. He can be reached at Continue reading